XacBank
USD 10m
SIFEM investment
2019
Year
Region: Mongolia
Sector: SME Development
Financial instrument: Senior Loan
Financial intermediary:
Mongolia lived through an economic downturn between 2015-2016 due to a decline in commodity prices and slower economic growth in China, which impacted many SMEs. After the first senior loan in 2016, SIFEM reaffirmed its commitment to support the bank and contributed USD 10 million to an IFC-led syndication, entirely ringfenced to micro and SME borrowers. Therefore, SIFEM’s loan will help XacBank to provide additional financing support to micro and small entrepreneurs during the economic recovery. It will foster financial inclusion by increasing access to finance in rural areas and contribute to diversification and long-term sustainability of the Mongolian economy through job creation, financial sector deepening and financial innovation.