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DEVELOPMENT BANK OF MONGOLIA TO SUPPORT CASHMERE BUYERS WITH LOW-INTEREST LOANS


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DEVELOPMENT BANK OF MONGOLIA TO SUPPORT CASHMERE BUYERS WITH LOW-INTEREST LOANS

20 Mar, 2020
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In aims of defining the solutions to increase the production of cashmere and gold as well as the amount of foreign exchange reserves, Speaker G.Zandanshatar received representatives of the aforementioned sectors on March 18.

Head of the Parliamentary Standing Committee on Economy J.Ganbaatar, Governor of the Bank of Mongolia B.Lkhagvasuren, Head of the Financial Regulatory Committee D.Bayarsaikhan, Head of the Geology and Mining Policy Coordination Department at the Ministry of Mining and Heavy Industry B.Munkhtur, First Deputy Chief Executive Officer of the Development Bank of Mongolia Ch.Enkhbat, Director of the Mongolian Commodity Exchange Kh.Baatar, and executives of the Mongolian National Chamber of Commerce and Industry (MNCCI), as well as wool and cashmere associations, attended the meeting.

At the start of the meeting, Speaker G.Zandanshatar said, “The COVID-19 infection has a large negative impact on the economy. Thus, the State Great Khural, the Government, and the National Security Council are paying special attention to the issue. And the issue is currently being studied by a workforce of the Parliamentary Standing Committees on Economy and Budget. During this crucial time, the production of wool and cashmere and gold industries will play important role in supporting the economy, budget revenue, and financial stability. We have the opportunity to acquire an income of USD 2-4 billion from exporting combed cashmere.”

With a total of 10 thousand tons of cashmere to be prepared this year, the Development Bank of Mongolia is currently planning to put out loans with low interest to support cashmere buyers. Based on the study done by the workforce of the Parliamentary Standing Committee on Economy, the Government of Mongolia will also support the ‘Cashmere’ programme. The loan amount that will be financed by the Development Bank of Mongolia will be MNT 300 billion, with an interest of 12 percent. Talks are currently being held to have the loans given with an interest rate of 3 percent, and the leftover 9 percent be settled through subsidy. As the loan is to be solely used for buying cashmere, with aims to keep the price of cashmere at the same amount as last year, and support herders in increasing their income, it must be strictly monitored, highlighted Speaker G.Zandanshatar and Head of the Parliamentary Standing Committee on Economy J.Ganbaatar.

As for the gold sector, there are currently 66 projects that are ready to be implemented in the framework of the Ministry of Mining and Heavy Industry’s policy to support the producers. However, the matter of giving special permits, and supporting them with investment and financing persists to be an issue, said Head of the Geology and Mining Policy Coordination Department at the Ministry B.Munkhtur.

Speaker G.Zandanshatar gave directions to the officials to accelerate the operations of ‘Erdenes Alt Resource’ LLC, subsidiary of ‘Erdenes Mongol’ LLC, employ workforce consisting of the top mining professionals in partnership with MNCCI, support private entities in putting out bonds and issuing shares, and realize the initiative to establish the Herders’ Corporation.

 

 

Source: https://montsame.mn/en/read/219480


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