According to Enkhtaivan Ganbold, CEO of Agricultural Reinsurance JSC, export credit agency is in plan to be established in Mongolia. Agricultural Reinsurance together with international qualified consultants and researchers organized meetings with entrepreneurs and representatives of small-scaled and medium enterprises running their operations in non-mining sector, and conducted market research on suitable version for carrying out export credit insurance in Mongolia. As a result, they concluded to establish a state-owned independent and transparent Export Credit Agency; thus the preparatory works have commenced.
As he sees, the functions of the Agency is to offer export credit insurance and loans to domestic business entities for international export operations. In addition, it will help exporters in finding customers and offer a credibility evaluation service.
New insurance product to be introduced to diversify the economy
In March 2017, in cooperation with the World Bank, the Government of Mongolia launched Export Development Project with an aim to support Mongolian SMEs in the non-mining sectors to strengthen their export capabilities and expand access to external markets. In the framework of the project, it has been required to introduce export credit insurance, a new insurance product aiming to protect exporters from financial risks, into Mongolian market. This task is now implemented by the Export Credit Insurance Department of the Agricultural Reinsurance JSC, the first and only reinsurance company in Mongolia.
Mr. Enkhtaivan believes that the product will be ready for offer starting from 2019. As he noted, it requires a legislative environment to introduce the new insurance product and operate the agency.
According to Mr Enkhtaivan, there are several significances of introducing the insurance:
First, it will allow exporters to have their income verified and operate with confidence in external markets. This creates an opportunity to sell products in new markets, increase exports and expand operations. In addition, export credit insurance contract can also serve as a pledge for exporters to issue a loan from banks in order to settle their financial necessity.
Secondly, it will help diversify Mongolia's vulnerable economy that is heavily dependent on mining sector revenue and its southern neighbour’s demand.
He then highlighted that Mongolia has an opportunity to diversify the export, by offering products, such as textile, cashmere, meat, seabuckthorn, medical beauty and food products.
Oyunbayar.N
According to Enkhtaivan Ganbold, CEO of Agricultural Reinsurance JSC, export credit agency is in plan to be established in Mongolia. Agricultural Reinsurance together with international qualified consultants and researchers organized meetings with entrepreneurs and representatives of small-scaled and medium enterprises running their operations in non-mining sector, and conducted market research on suitable version for carrying out export credit insurance in Mongolia. As a result, they concluded to establish a state-owned independent and transparent Export Credit Agency; thus the preparatory works have commenced.
As he sees, the functions of the Agency is to offer export credit insurance and loans to domestic business entities for international export operations. In addition, it will help exporters in finding customers and offer a credibility evaluation service.
New insurance product to be introduced to diversify the economy
In March 2017, in cooperation with the World Bank, the Government of Mongolia launched Export Development Project with an aim to support Mongolian SMEs in the non-mining sectors to strengthen their export capabilities and expand access to external markets. In the framework of the project, it has been required to introduce export credit insurance, a new insurance product aiming to protect exporters from financial risks, into Mongolian market. This task is now implemented by the Export Credit Insurance Department of the Agricultural Reinsurance JSC, the first and only reinsurance company in Mongolia.
Mr. Enkhtaivan believes that the product will be ready for offer starting from 2019. As he noted, it requires a legislative environment to introduce the new insurance product and operate the agency.
According to Mr Enkhtaivan, there are several significances of introducing the insurance:
First, it will allow exporters to have their income verified and operate with confidence in external markets. This creates an opportunity to sell products in new markets, increase exports and expand operations. In addition, export credit insurance contract can also serve as a pledge for exporters to issue a loan from banks in order to settle their financial necessity.
Secondly, it will help diversify Mongolia's vulnerable economy that is heavily dependent on mining sector revenue and its southern neighbour’s demand.
He then highlighted that Mongolia has an opportunity to diversify the export, by offering products, such as textile, cashmere, meat, seabuckthorn, medical beauty and food products.
Oyunbayar.N