JICA Two-Step Loan Project Delivers Long-Term Financing to Mongolian SMEs www.montsame.mn
The JICA Two-Step Loan Project for Small and Medium Enterprises Development and Environmental Protection in Mongolia has been successfully implemented by the Ministry of Food, Agriculture, and Light Industry of Mongolia in cooperation with international donor organizations for more than 20 years.
Mr. Jambaltseren Tumur-Uyaa, State Secretary of the Ministry of Food, Agriculture, and Light Industry and Chairman of the Project Counterpart Steering Committee of the JICA Two-Step Loan Project, highlighted the project’s achievements and long-term impact in an interview.
Financed through the Official Development Assistance (ODA) yen loan of the Government of Japan, the JICA Two-Step Loan Project has become one of the most effective financial mechanisms supporting domestic private enterprises on a sustainable and long-term basis. Among the projects implemented by the Ministry of Food, Agriculture, and Light Industry in partnership with international donor organizations, the initiative stands out for its significant contribution to the development of small and medium-sized enterprises and environmental protection efforts in Mongolia.
To promote sustainable development, creation of employment, alleviation of poverty, and protection of the environment in Mongolia, the Two-step Loan Project has been successfully implemented over the operational periods of phase 1 (2006–2010) and phase 2 (2011–2015), with the seed funds of JPY 2.9 billion and JPY 5.0 billion, respectively. Since the full utilization of the yen loan seed funds in 2018, the Ministry has been maintaining the revolving fund operations continuously, efficiently, and sustainably, in line with the Loan Agreements between the governments of Mongolia and Japan. The unique feature of this project is that the small and medium companies are provided with the loan funds to finance their business expansion projects of socio-economic and environmental importance through an on-lending agreement with the contracted commercial banks, where banks take the companies’ credit risks vis-à-vis the government of Mongolia.
Published Date:2026-05-12





