IFC Launches Project to Promote Good Corporate Governance, Trade Finance in Mongolia

Ulaanbaatar, Mongolia, August 24, 2009-IFC, a member of the World Bank Group, signed a memorandum of understanding with the Mongolian parliament for a training program to help private companies improve economic performance through increased transparency and accountability.
(Media-Newswire.com) - Ulaanbaatar, Mongolia, August 24, 2009—IFC, a member of the World Bank Group, signed a memorandum of understanding with the Mongolian parliament for a training program to help private companies improve economic performance through increased transparency and accountability. IFC also signed an agreement with Khan Bank under IFC’s Global Trade Finance Program to provide a facility of $2 million. Supporting trade finance is an IFC strategic initiative in Mongolia at a time when the financial crisis has reduced the availability of trade funding worldwide. Under the Mongolia Corporate Governance project entered into with the Standing Committee on Economics of Mongolia’s parliament, IFC agreed to train the Mongolian private sector in best business practices. The project is funded through the Netherlands-IFC Partnership Program. IFC’s project team will work closely with the government to improve existing regulations, and partner with local training and educational institutions to develop the necessary skills to enhance corporate governance. The trainings will include working with educational institutions to develop a curriculum that provides future business leaders and others with best practice knowledge and skills. IFC also will work directly with companies to implement good governance standards and assist banks in assessing their clients’ corporate governance practices to reduce exposure to corporate loan defaults. “Improving corporate governance in Mongolia will help us attract investment and make our economy more competitive,” said Tsevelmaa Bayarsaikhan, Member of Parliament and Chairman of the Standing Committee on Economics. “This project is particularly important given the impact of the global economic crisis.” “Good corporate governance provides a foundation for strong commercial performance,” said Lars Thunell, IFC Executive Vice President and CEO, at the signing. “This program is part of IFC’s effort to stimulate private enterprise development and increase capital inflows. It complements IFC’s new project to reform business inspections in Mongolia.” Commenting on the trade agreement, Thunell said, “The trade finance program is particularly suitable for Mongolian banks as we expect more trade activity in the country with the rapid development of the private sector. Khan Bank is a valued client, and we are pleased to expand our relationship with them.” Thunell is spending four days in Mongolia, meeting with government and central bank officials and private sector clients. “Supporting the private sector in Mongolia is a priority for IFC. We value our Mongolian banking clients in particular because they serve more than 400,000 families,” he said. “We are currently evaluating a number of investments in other sectors and our Advisory Services program is expanding as well.” About IFC IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.



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