Eximbank offers $20 mil. loan to Mongolian bank

The Export-Import Bank of Korea (Korea Eximbank) signed a $20 million inter-bank export loan agreement with the biggest Mongolian commercial lender Wednesday providing more opportunities for domestic exporters, the state-run lender said.

Korea Eximbank Chairman Kim Yong-hwan agreed with Khan Bank CEO Simon Morris to provide loans to Mongolian importers, who want to buy products from Korea.

Korea Eximbank said that with the agreement the lender can provide loan services for the Mongolian importers without opening its branches in the nation.
“We expect Korean exports, such as automobiles, daily necessities and construction machinery to increase with this agreement,” said an official of Korea Eximbank.

Before the signing, Kim met Mongolian finance minister Bayartsogt Sangajav, and discussed how to cooperate on economic issues.
Sangajav thanked Kim for the lender’s financial support from the Economic Development Cooperation Fund (EDCF), and asked for continual help for stable economic growth in the Asian nation. The EDCF is a policy fund, designed to support industrialization of developing nations, established in 1987.

Kim promised to enlarge the size of aid projects and vowed to enforce its financial support through various measures.
Currently, Korea Eximbank is providing $60 million for six projects led by the EDCF, which include thermal power station construction, modernization of government telecommunication cables and establishing emergency rescue information centers.

Of the $60 million, 76.5 percent of assets have been used for information technology projects, while 14.8 percent of the fund has been allotted for energy programs.

According to Korea International Trade Association, the amount of trade between the two nations marked $231 million last year. Korea exported $192 million of automobiles and telecommunication devices among others to the Asian nation, and imported $39 million of commodities and grains. Mongolia is a resource-abundant country with rich amounts of fluorite, copper and coal.
shosta@koreatimes.co.kr

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