MICROCAPITAL BRIEF: International Finance Corporation (IFC), Mongolia Seek to Improve Secured-Transaction Payment System

The International Finance Corporation (IFC), the private-investment arm of the US-based World Bank Group, has recently partnered with Mongolia’s Ministry of Justice to augment Mongolia’s regulatory system for secured-transaction payments, transactions between lenders and borrowers that are predicated on borrowers’ collateral. In collaboration with the Japanese Ministry of Finance; the Swiss State Secretariat for Economic Affairs; and the Canadian Department of Foreign Affairs, Trade and Development, Mongolia’s Ministry of Justice and IFC will set up a legal framework, Pledge Law, to support the secured-transaction payment system; develop an online registry; and work with the Mongolian Bankers Association, a 14-member NGO, to train industry professionals on the system. By establishing a stronger system relating to the use of collateral the initiative aims to improve the access of micro-, small and medium-sized enterprises to loan funding.

The IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

By Tejas Jain and Juan Blanco, Research Associates

About International Finance Corporation

A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. The IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources:

International Finance Corporation, “IFC Supports Mongolia’s Secured Transactions Reform, Expanding Access to Credit for Smaller Businesses,”?http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/C53599C213FE3BBA85257CA600348C57

MicroCapital Story, March 27, 2014, “International Finance Corporation (IFC) Invests $14.4m in Equity in Philippine Resources (PR) Savings Banking Corporation to Expand Rural Operations,”?https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-14-4m-in-equity-in-philippine-resources-pr-savings-banking-corporation-to-expand-rural-operations/

MicroCapital Story, March 26, 2014, “International Finance Corporation (IFC) to Help Guyana Bank for Trade and Industry (GBTI) Improve Risk Management for Small, Medium-Enterprises (SMEs) in Guyana,”?https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-help-guyana-bank-for-trade-and-industry-gbti-improve-risk-management-for-small-medium-enterprises-smes-in-guyana/

MicroCapital Story, November 16, 2013, “Triodos Investment Management of the Netherlands Sells Stake in Mongolian TenGer Financial Group to Orix, International Finance Corporation (IFC), Mongolyn Alt Group,” https://www.microcapital.org/microcapital-brief-triodos-investment-management-of-the-netherlands-sells-stake-in-mongolian-tenger-financial-group-to-orix-international-finance-corporation-ifc-mongolyn-alt-group/

MicroCapital Universe Profile: International Finance Corporation (IFC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

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