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DBRB, Mongolia’s Xacbank sign agreement on export finance

MINSK, 5 September (BelTA) – The Development Bank of the Republic of Belarus (DBRB) and Xacbank of Mongolia signed a framework agreement on export finance on 5 September, BelTA learned from the DBRB press service.

During the first Belarusian-Mongolian business forum in Ulaanbaatar representatives of the Belarusian Development Bank held talks with Mongolia’s major financial institutions. Following these talks the framework agreement was signed with the Mongolian bank. On behalf of Belarus the document was signed by Chairman of the Board of the Development Bank Sergei Rumas and on the part of Mongolia by President of Xacbank Ganbaatar Jambal.

The agreement contains the arrangements on the general terms of the issue of export loans by the Development Bank to Mongolian Xacbank to finance the acquisition of goods, works and services from residents of Belarus with the insurance to be provided by Exmigarant of Belarus.

"The agreement will contribute to the strengthening of trade and economic relations between Belarus and Mongolia, including exports of Belarusian goods, works, services to Mongolia," the Bank said.

OAO Development Bank of the Republic of Belarus was created in 2011 by the relevant presidential decree. The bank is designed to focus on financing government programs and socially important investment projects. The founders are the Council of Ministers and the National Bank of the Republic of Belarus.

Set up in 2001, Xacbank is one of the largest banks in Mongolia, specializing in lending to large, medium and small businesses. The Bank's shareholders are the European Bank for Reconstruction and Development, and the International Finance Corporation.