AKIPRESS.COM - The Ministry of Food, Agriculture, and Light Industry of Mongolia and 10 commercial banks of Mongolia have signed a financing agreement for the working capital and investment loans to support wool, cashmere, and leather processing industry.

The signing ceremony was attended by Minister of Food, Agriculture and Light of Mongolia Industry Enkhbayar Jadamba, Governor of the Bank of Mongolia Lkhagvasuren Byadran, Economic Policy Advisor to the President of Mongolia Davaadalai Batsuuri, as well as representatives of enterprises and professional associations operating in wool, cashmere, and leather production, the State Bank, Khan Bank, Trade and Development Bank, Golomt Bank, Capitron Bank, Khas Bank, Bogd Bank, Transport Development Bank, M Bank, and Arig Bank.

The loan financing of MNT 788.9 billion has been approved, including MNT 300 billion for working capital, MNT 488.9 billion for investment loans, and MNT 66.4 billion for interest relief on working capital and investment loans to be paid by the government. The wool, cashmere and leather processing industry support national program initiated by the President of Mongolia will be implemented in 2024-2028.

The program targets to increase the complete cashmere processing to 40%, expand cashmere production to MNT 2.3 trillion, and export to $690 million, while creating more than 3,000 new jobs. Regarding wool processing, production, and export, it aims to achieve complete wool processing to 55%, wool production to MNT 670 billion, export to $119 million, and creating about 2,200 new jobs. In addition, deep processing of leather and hides is estimated to reach 50%, increasing sales to MNT 90 billion, exports to $22.4 million, and creating more than 3,000 new jobs.

Mongolia has an average annual production capacity of 37,000 tons of sheep wool, 10,000 tons of goat cashmere, 2,000 tons of camel wool, 400 tons of yak wool, and 18 million pieces of leather and hides. More than 70% of wool and cashmere raw materials are exported after being merely washed, while only about 40% of leather and hide raw materials undergo processing.