Source: Media-Newswire.com                          Date: 21 June, 2011

IFC, a member of the World Bank Group, will provide USD20 million to Khan Bank LLC, Mongolia’s biggest bank by assets, to help strengthen its capital position and increase lending to small and medium enterprises. The seven-year subordinated loan will allow the bank to offer up to 14,000 new loans to small and medium enterprises by the end of 2015. IFC’s investment will also help the bank maintain adequate capital and support its sustainability and development.

IFC is the third-largest shareholder in Khan Bank, owning a 9.1 percent stake. “IFC’s investment demonstrates its continued commitment as a shareholder of the bank and reaffirms its intention to provide long-term support to Mongolia’s banking sector,” said Mr. Simon Morris, Chief Executive Officer of Khan Bank.  “A strong banking system is essential to support the country’s economy and Khan Bank is becoming a role model for reform in Mongolia’s banking system,” said Mr. Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia. “IFC’s continued partnership with Khan Bank will help provide access to finance for small and medium enterprises to create more jobs and support Mongolia’s transition to a stable market economy.”