ULAN BATOR, Mongolia, May 19, 2022 /PRNewswire/ — Regardless of ongoing speculation about the Development Bank of Mongolia (“DBM”) and the allocation of funds, the bank asserts that it is prepared to repay the outstanding bond payments of the 30 billion yen Samurai Bond before its due date. Samurai bonds are guaranteed by the Japan Bank for International Cooperation (JBIC) and the Government of Mongolia.

The DBM was created in 2011 by the government of Mongolia fill the void created by the national and commercial banking sector which is unable to finance large-scale development projects for economic expansion by providing access to long-term, low-interest loans, thus providing cost-effective financing . In 2013, the bank issued Mongolia first bond Samurai to invest in infrastructure projects and offset a weakened economic cycle. It has mandated 60% of its loans to finance large-scale industrial projects to facilitate Mongolia overall development.

In recent years, there has been a lot of media speculation regarding DBM, ranging from unqualified loan applications to non-performing loans. The situation is not unique to DBM, as in recent years, financial institutions around the world have faced challenges in lending to small and medium enterprises and large-scale projects, particularly during the pandemic.

When the bank was created, the economy of Mongolia in deficit, with a foreign trade deficit of $1.4 billion and foreign investment down 47%. DBM’s main objective was to restore the economy through the development of local businesses and megaprojects. Over the past five years, the turnover Mongolia on average $13.2 billion. Foreign trade turnover has been positive since 2014, even during the pandemic. While the trade balance was negative $2 million in 2013, it moved to $9.25 billion in 2021.

Companies are experiencing a post-covid recovery period and DBM aims to use this to repay the Samurai bond before maturity, allocating funds equal to 30% of the bond ready to be paid and having sufficient time to allocate more before the December deadline. , 2023. Despite the global pandemic, DBM is set to repay the Samurai Bond which in turn will attract more foreign direct investment to the country.

Company: Development Bank of Mongolia

Name: Nari N White

Title: Media Manager

E-mail: [email protected]

Phone: +976-70007222

SOURCE Development Bank of Mongolia