ICT for Health (Education)

Wednesday, August 24, 2005

Rural Banking in Mongolia

This Oregonian article ("Banking on Mongolia", Richard Read, 21 Aug 05) discusses the role of XacBank for rural Mongolians including herders. Lending at annual rates of 18%, the bank enables herders to diversify their livelihood, which is important given the zud (dzud) - extremely cold winters - in recent years. And this isn't quite microfinance:
Duuhenduu and Vladimir, a weathered 50-year-old man in tall black boots, pooled resources with about 20 families that produce and sell mutton, milk and cashmere. Mercy Corps provided training and helped secure a $4,000 XacBank loan to buy a milking camel and a small store to sell their products.


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