According to the Mongolian Wool and Cashmere Association, the cashmere sector requires a total of MNT 1.6 trillion in financing this year to purchase raw cashmere from herders.
Of this amount, the Government has provided MNT 440 billion in working capital loans to 47 companies, including both large enterprises and small and medium-sized businesses. The financing covers approximately one-quarter of the sector’s total funding requirement.
Through concessional loans provided under the “White Gold” initiative, domestic manufacturers are now able to prepare 60–70% of their required raw materials, up from just 20–30% previously.
The Association also reported that the price of raw cashmere has increased fourfold, from MNT 50,000 to MNT 200,000 per kilogram, boosting herders’ cash income.
Meanwhile, production capacity and employment in the cashmere sector have increased, while exports of cashmere products have risen from USD 80 million to USD 371 million.
According to the Association, the working capital loans provided by the state are issued through commercial banks to eligible enterprises against collateral, with the loan repayment rate reaching 100%.
Mongolia’s cashmere industry exports brushed cashmere and value-added finished products to around 40 countries worldwide and is working toward fully processing raw materials domestically and producing internationally competitive products.
According to the Mongolian Wool and Cashmere Association, the cashmere sector requires a total of MNT 1.6 trillion in financing this year to purchase raw cashmere from herders.
Of this amount, the Government has provided MNT 440 billion in working capital loans to 47 companies, including both large enterprises and small and medium-sized businesses. The financing covers approximately one-quarter of the sector’s total funding requirement.
Through concessional loans provided under the “White Gold” initiative, domestic manufacturers are now able to prepare 60–70% of their required raw materials, up from just 20–30% previously.
The Association also reported that the price of raw cashmere has increased fourfold, from MNT 50,000 to MNT 200,000 per kilogram, boosting herders’ cash income.
Meanwhile, production capacity and employment in the cashmere sector have increased, while exports of cashmere products have risen from USD 80 million to USD 371 million.
According to the Association, the working capital loans provided by the state are issued through commercial banks to eligible enterprises against collateral, with the loan repayment rate reaching 100%.
Mongolia’s cashmere industry exports brushed cashmere and value-added finished products to around 40 countries worldwide and is working toward fully processing raw materials domestically and producing internationally competitive products.