Mongolia is facing the cumulative effects of socio-political, economic, and ecological shocks and stresses that undermine its potential for inclusive and sustainable growth. In response to that Mercy Corps has designed the Resilient Communities project (RCP) that aims to achieve growth in income and social well-being for Mongolia’s rural communities by stimulating meat production and export opportunities in its livestock economy. One of the program objectives is focused on increasing financial inclusion of herders and rural businesses, improving access to and use of a variety of financial and insurance products.
On January 13, 2017 Mercy Corps Mongolia signed a Memorandum of Understanding with Credit Guarantee Fund of Mongolia (CGFM). Mercy Corps and the CGFM will cooperate to provide loan guarantee services to rural businesses lacking loan collateral. Under the MoU Mercy Corps will be promoting CGFM’s services, organizing trainings to strengthen capacity of meat value chain actors, helping to develop credit guarantee products and facilitating linkages between herders and meat processors with the CGFM. CGFM will be supporting RCP activities in hub aimags and working with commercial banks to offer loan guarantee and other financial products and services to target clients.
"We will support herders and meat producers by offering better financial services to help them improve livestock production and get access to domestic and export markets. We are confident that local businesses lacking loan collateral will be able to expand and develop their businesses by using our services. This MoU will contribute to building of productive and competitive livestock industry" said Ramesh Singh, Country Director of Mercy Corps Mongolia at the MoU signing ceremony.
The Executive Director of CGFM Chandmani also praised this MoU as an important step towards increasing financial inclusion of rural businesses. "We are very happy to sign this MoU. We are proud to collaborate with Mercy Corps. This MoU will help us to improve our loan guarantee system and expand our service to more rural businesses" says Mr. Chandmani.