Ulaanbaatar
Loans worth MNT300 billion to be issued to cashmere manufacturers
Politics
Ulaanbaatar/MONTSAME/. Today’s irregular meeting of the
Cabinet approved a resolution on actions for cashmere sector.
“Within the resolution, several comprehensive measures will be taken, and up to 50 percent of cashmere to be exported will be processed to a final product,” emphasized Minister of Food, Agriculture and Light Industry Ch.Ulaan.
“Cashmere is a strategic product of our country. At the end of last year, Mongolia counted 70.9 million head of livestock. According to the herd structure, there is a potential to have 10.2 thousand tons of cashmere. As the cashmere sector is likely to face risk due to the coronavirus pandemic, the government considers it proper to support the sector in the peak season for cashmere market. Within the resolution, the Development Bank of Mongolia will provide financial sources. Specifically, soft loans worth MNT300 billion in total will be issued to the national cashmere manufacturers, plus MNT200 billion will be resolved as a financial source to reserve cashmere. The loan will have an annual interest rate of 3-5 percent,” said the Minister.
About 65 percent of Mongolia’s total cashmere is exported in
raw form, while 25 percent as final products.
