MNT100 BILLION SOFT LOAN PROGRAM GEARED TOWARDS SME ANNOUNCEDUlaanbaatar
Within the framework of public-private partnership, Ulaanbaatar City’s SMEs Support Center and Bogd Bank have announced that a MNT 100 billion soft loan with be granted to the SMEs operating in Ulaanbaatar city. Specifically, soft loans with a monthly interest rate of 1.3-1.5 will be provided to SMEs. SMEs will be offered flexible and favorable conditions, and the partner companies will focus on further improving loan and deposit conditions.
D.Sumiyabazar, Governor of the Capital City and Mayor of Ulaanbaatar, G.Gangamurun, Director of Ulaanbaatar City’s SMEs Support Center, and G.Saruul, Executive Director of Bogd Bank made statements regarding this on January 20.
During the press conference, D.Sumiyabazar, Governor of the Capital City and Mayor of Ulaanbaatar said “Within the framework of the Capital City’s new legal environment, city authorities are working to provide support to our SMEs. We are working to expand the public-private partnerships to improve the economy, create more job opportunities in all sectors to make Ulaanbaatar a more employment-friendly city.”
G.Gangamurun, Director of Ulaanbaatar City’s SMEs Support Center highlighted that “Public-private partnerships have been set up to support SMEs that have been financially impacted by the covid-19 pandemic. In addition, at the policy level, we are working to support SMEs in exporting their goods and products as well as developing their sales and marketing channels”
There are 43,236 SMEs operating within the capital city which is nearly 70% of the total SMEs nationwide. The SMEs sector, which employs more than 674,000 people, have been impacted the most by the Covid-19 pandemic.
Since November 2020, Ulaanbaatar City’s SMEs Support Center has conducted five surveys. According to the survey, 96% of the sector is at financial risk and nearly 95 per cent of them need additional funding to overcome this risk. Therefore, partner organizations have expressed their confidence that the “Financing project for Small and Medium Enterprises and Service providers” will prove to have great benefits.