Ch.Ulaan: SMEDF receive loan projects between May 24- June 10

Translator E.Oyun-Erdene

2019-05-14 15:54 GMT+8

-Ch.Ulaan: Loan decision of SMEDF is no longer approved by the Minister-

On May 14, the Minister of Food, Agriculture and Light Industry gave information about SMEDF loan procedure has been updated. 

Working group of SMEDFund has worked on approval of “Procedure on selecting projects of long-term concessionary loan project” and the loan procedure has included several key amendments. According to the procedure, loan approval is no longer given by the Minister and Project selecting committee with 7 members shall make approval later on. The members include Wealth Creators Support Association and representatives of State organizations.

MNT 47 billion was reflected in State budget of 2019, but no loan has been disbursed in this year. In framework of updated procedure of SMEDF, loan projects will be received between May 27 and June 10. Applicants shall submit projects to Minister of Food, Agriculture and Light Industry and local authorities. 

MNT 20.5 billion is distributed to 21 provinces and MNT 26.5 billion to Ulaanbaatar, and:

• MNT 20- MNT 200 million in local area

• MNT 20 million- MNT 1 billion in Ulaanbaatar

Head of Department of SME and Cooperation Policy Implementation of the Ministry of Food, Agriculture and Light Industry Ya.Erdenesaikhan informed “Loan amount was decreased to be MNT 1 billion which was 2 billion last year”. 

According to updated procedure, followings shall be adhered:

• Loan projects of companies owned by senior officials of government, and their family shall not be recieved. It includes: President of Mongolia, Prime Minister, Speaker of the Parliament, Parliament members, Ministers, and Governors of provinces and soums. 

• Loan is not available if applicant has loan outstanding in SMEDF and other funds, and default loan history.

• Given name and surname, registration number, project name and operation of borrower shall be disclosed.

• SMEDF loan shall be insured in credit risk and property insurances every year.

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