Green Credit Guarantee Fund

In the 21st century, economic development is increasingly defined by its commitment to sustainable development and protecting the ecological balance of the global environment. Recognizing the importance of this movement, the Mongolian National Chamber of Commerce and Industry (MNCCI) initiated the Green Credit Guarantee Fund (the Fund) with financial support from the Dutch Government. The Fund is a pioneering institution which introduces a collateral guarantee service in financial markets, thereby supporting cleaner production, energy efficiency and environmentally conscious industrial activities in Mongolia.

In the last 2 years the Green Credit Guarantee Fund has issued a total of 415,5 million tugrug loans to 8 business entities in the areas of fuel and energy efficiency, recycle and purification of waste water from leather tanneries, waste reduction, and its recycle for a three-year period. Of these loans 20-80% were offered through collateral guarantees of Fund’s own assets. All of the loans issued by the Fund have been appropriately utilized and received gratitude from business entrepreneurs of Mongolia. In fact, the Fund’s services are the most sought after services at the Chamber.

In addition, the Green Credit Guarantee Fund obtained 1 billion tugrug loans from the Government of Mongolia at a discounted loan rate in 2007, and has issued the loans in total to 13 small and medium business enterprises on a preferential basis with a particularly low loan rate. Consequently, the Fund is successfully running its operations not only towards the environmental protection, and waste water reduction, but also towards the promotion of good corporate governance, and the creation of a favorable economic environment of the private sector based on business trust and good corporate code of practice.