Ts.Nyam-Osor: If Mongolia supports SMEs in the course of a decade with 150-200 billion tugriks

Our guest is Nyam-Osor Tseveendorj, director of the Government implementing agency for Small and Medium Sized Enterprises (SME).

-Over the last two years we have supported SMEs with 60 billion tugriks. What is the result of that investment? How many enterprises have grown out of it?


-60 billion tugriks have been provided from State budget since 2009. Commercial banks also lent 24 billion tugriks with easy loan terms. The fund was allocated 3,051 SMEs.

Approximately 970 SMEs updated their technology and about 1,800 SMEs have newly emerged. Others supported their normal operation. Besides that, employment increased by 11,700, especially in rural areas.

There are so many indicators beyond measure. First of all, when I was going around the country two years ago, people used to say “We have problem. I’m poor. We need money”.

Recently I’ve stayed in ten provinces and now the people are saying “I have an idea for a project. I want to put it into practice. Support me and I will do it”. People’s opinion has changed dramatically.

Instead of begging for money, they now want to actually do. Secondly, thanks to the SMEs, various product prices are decreasing such as bakeries and spinning- houses etc. Recently I went to the black market in Uvurkhangai province.

There were seven sellers with boots. About 80 percent were made domestically. So I realised that manufacturing in Mongolia is expanding rapidly, especially in rural areas.

-Is it enough to develop SMEs if the Mongolian Government provides 30 billion tugriks each year? What affect and in how many years can we see on the country’s economy?

-It’s absolutely insufficient because Mongolian Government provides 30 billion tugriks depending on the size of the budget. Over the last two years we requested a 913 billion tugriks loan, but we only received 84 billion.

So only one applicant can get a loan for every nine who apply. According to the implementing programme of the Government action plan, we need at least 150 billion tugriks every year to develop SMEs. This is relatively real accounting. If Mongolia supports SMEs in the course of the next decade with 150-200 billion tugriks per year, we can come close to world classification.

-So does our Government have access to provide 150 billion tugriks every year?

-The Government plans to issue bonds in total of 300 billion tugriks to support manufacturing. 150 billion tugriks will be devoted to SMEs. 100 billion tugriks for processing cashmere, and the remaining 50 billion tugriks will be dedicated to support processing wool and moult. When the Government issue the bond, it’s the first step to finance SMEs with 150 billion tugriks.

-What about this year’s loan for SMEs? How many companies requested a loan? -We received all requests by the end of 2010. 5,489 applicants submitted requests, but unfortunately, not everyone can be successful. This year the Government granted 24 billion tugriks to 329 soums. To clarify, every soum received 50-265 million tugriks on May 17,

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