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‘Let’s Resolve with Innovation’ consultation held

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The government’s monthly consultation meeting “Let’s Resolve with Innovation” was organized under the theme “Let’s Create in Mongolia: Project to replace imports and increase exports” with the presence of authorities from the Development Bank, authorities from commercial banks, owners of projects, and representatives of relevant agencies and ministries.

New Government of Changes declared 2014 the Year of Industrialization and reached a decision to spend one trillion MNT on developing industrialization, announcing the selection of projects to replace imports and promote exports under the initiative “Let’s Create in Mongolia”. At the meeting, Prime Minister N.Altankhuyag emphasized that the projects should be launched soon and financed in May.

A loan or financing is being granted to qualified individuals and entities who submitted their projects to a commercial bank, and the banks deliver a request for financing to the Development Bank. The Development Bank established an agreement with 13 commercial banks. Some 888 projects which fulfilled standards and criteria in the first phase have been transferred to these banks and commercial banks have began research on the projects. Once their loan documents and materials are complete, a project is submitted to Development Bank within two weeks by the commercial banks. Loans will be granted in MNT for a term of five years and loan interest will not be higher than nine percent, reported CEO of Development Bank N.Munkhbat.

Projects which requested loans of two billion MNT or less are to be financed from an SME fund. There are a total of 579 projects which require such financing. The total loan amount for these projects reached 560 billion MNT. The fund will resolve and make decisions on the projects in accordance with its internal regulations and rules. Other projects will be supervised and transferred to the working group headed by the Prime Minister, and the government will make final decisions accordingly.

According to the CEO of Development Bank, the commercial banks will issue loans equivalent to two thirds of the total cost of the project and the executing entity of the project will be responsible for one third of the total cost.

Project developers and initiators made suggestions at the end of the meeting, offering that support is needed in importing raw materials to make products, and that information regarding what projects and businesses received loans should be made available to the public.

Minister of Economic Development N.Batbayar noted that financing will be granted without difficulty once selected projects meet the demands and criteria of commercial banks.

Prime Minister N.Altankhuyag gave duties to Development Bank to intensify the loan granting procedure and advised project owners to deliver their comments and requests regarding project election and loan granting issues to the government’s “11 11” hotline.


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