AECM Annual Event -Istanbul 2014

1. INTRODUCTION
CREDIT GUARANTEE
FUND OF MONGOLIA
ALTANKHUYAG.Sh
Executive Director
17.Oct.2014
1 10/17/2014

2. Legal framework generation
– 2004 Credit guarantee project under pilot program with 4 aid
organizations:
 GIZ – Germany, Mercy Corps, USAID – USA, Enterprise Mongolia – UNDP, ADRA (mostly portfolio guarantees).
– 2005 Credit Guarantee concept was first revealed to “The SME
support program” by the GM and to the “Law of SME” adopted
by the Parliament in 2007.
– 2012 Law of Credit Guarantee Fund was promulgated.
The law is applicable to the fund where the GM acts as a
founder, an initiator and a counter-guarantor. CGFM was
established in November.
– June 2013 First guarantee has been extended based on operational
procedures figured out.
2 10/17/2014

3. Operation framework generation
– 2012 and 2013 International donor organizations and other
countries meetings to support SMEs through effective
credit guarantee system held
 UNDP, JICA, USAID, GIZ, ADB and many others.
– 2013 Knowledge-sharing program under KDI (Korea).
 Effective learning from KODIT experiences and policy recommendations
 Learning other institutions from Japan, Buriat Republic (Russia)
– Launching cooperation with such credit guarantee funds from
Malaysia, Korea, Taiwan and Moscow (Russia)
3 10/17/2014

4. Stabilization
Organizational structure
Governing
Board
Credit Guarantee
Department
Credit Guarantee
Committee
Auditing Board
Administration
Department
Executive Director
/Operational unit/
Research and
Training
Department
Local Representatives
10/17/20144

5. Stabilization
(Circumstances)
– The Governing board is highest hierarchy of the Fund.
– Indirect guarantee scheme.
– Assessment is carried out by the Fund on banks’ conclusion.
– Coverage ratio is up to 60%, but not exceed ₮250 M* (~€106K),
leverage ratio - 20 times.
– Guarantee fee varies from 1 to 3% of guaranteed amount depending on
credit term.
– After 90 days, the fund is to pay default obligation making sure that
the lender has taken all countermeasures against borrower it has to do.
5* €1=₮2,305.0 10/17/2014

6. Stabilization
(Outstanding Guarantees)
6 10/17/2014* €1=₮2,305.0
2014.04 2014.05 2014.06 2014.07 2014.08 2014.09 2014.10
Loans 21,265 24,769 30,587 36,327 37,254 42,163 42,602
Guarantees 8,736 10,393 12,006 14,262 15,193 17,284 17,434
numbers 132 161 186 212 228 257 263
21,265
24,769
30,587
36,327
37,254
42,163
42,602
8,736
10,393
12,006
14,262
15,193
17,284 17,434
132
161
186
212
228
257 263
0
50
100
150
200
250
300
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
numbers
Amounts/mlntugrugs/
Extended guarantee
* 18,482 € /mln/
* 7,563 € /mln/

7. Challenges
– To expand its outreaches throughout the country by developing credit
guarantee system including suitable schemes, sustainable financing,
effective cooperation mechanism of central, local governments and
banking institutions,
– To enhance comprehensive guarantee products and related services to
SMEs development and growth focusing on thorough risk analysis
including legal, managerial as well as behavioral not merely relaying
on financial risks only.
– To strengthen and expanding cooperation with international institutions
(ACSIC, AECM and others) focusing on capacity building of personals,
exchanging best practices and transferring know-how.
7 10/17/2014

8. Thank you for your attention.
8 10/17/2014