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NetworkNewsToday: MONGOLIA: CREDIT & MICROFINANCE for RURAL BUSINESSES by THE WORLD BANK

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Published on Feb 16, 2010

NetworkNewsToday: 15 February 2010 - THE WORLD BANK: In Mongolia, a microfinance system aimed at the poor in particular is helping the far flung rural areas to develop by increasing business opportunities.

Oyunbileg repairs shoes for a living in her small workshop in southern Mongolia.

The money she earns is enough to support her four children and herself and even send her oldest daughter to university far away in the capital.

SOUNDBITE (Mongolian) Oyunbileg, Cobbler
When I started my business, I needed money, so getting a loan from the non- bank institution was the best way, I have gotten loans almost ten times, and I use the loans to buy materials to repair the shoes and with the income I can send my daughter to study in Ulaanbaatar and live and I am very happy with this loan, as the interest is very low.

The loans are part Mongolias Microfinance Development fund to encourage financial growth through small businesses in the countrys rural areas where economic downturn has been most severe.

Local financial institutions are responsible for disbursing the loans in order to build community capacity, says loan officer Batsukh.

SOUNDBITE (Mongolian) Batsukh, Non-Financial Institution:
The loans that we give are very important especially, in bayanhangor, because our interest rate is very low and the demand is very high.

Oyunbileg who says she wears the mask to ward off swine flu and glue odors-has repaid her loans, and asked for more so she can expand.

SOUNDBITE (Mongolian) Oyunbileg, Cobbler:
I am interested to create more jobs and employ more people and to teach some skills to others so that that they do this as well.

More than 32,000 loans have been disbursed by banks and non-bank financial institutions under the microfinance fund, part of Mongolias Sustainable Livelihoods Project supported by the World Bank and donor partners.

Most of half the loans have gone to households living below the poverty line. Thirty-two-year-old Tumenjargal received a small loan to buy this machine and other equipment necessary to weave. She makes sweaters and hats from the wool of the camels and cashmere goats her husband raises.

SOUNDBITE (Mongolian) Tumenjargal, Weaver:
This is the third time that I received a loan from the fund, and I do have a plan to expand my business, because this machine I have is now for thick materials, and I would like a machine to weave more high quality cashmere.

More than 150,000 Mongolians are benefiting either directly or indirectly from the loans, including Munkhchimeg, a single mother, who works for Oyunbileg in the shoe repair shop.

SOUNDBITE (Mongolian) Munkhchimeg,worker:
Of course it is important to have job. I have four children, and am the only bread winner.

She was hired by Oyunbileg when business started to grow two years ago, and the two widows have worked together happily, and lucratively, ever since. ....................................................................................... ( THE WORLD BANK ) ....................................................................................NetworkNewsToday:
SEE: http://www.NetworkNewsToday.net
WORLD NEWS FROM GLOBAL PERSPECTIVES
by Internationally Accredited News Journalists. ..............................................................................................................................

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