UB and FRC to collaborate in supporting small-sized business

Ulaanbaatar /MONTSAME/ A cooperation contract was signed Wednesday by E.Bat-Uul, the Mayor of Ulaanbaatar city and Z.Narantuya, chairwoman of the Finance Regulatory Committee (FRC), to back small-sized business. ________________________________________ In accordance with a resolution of the Citizens’ Representative Khural of Ulaanbaatar, a programme has been approved to support small-sized business and to reduce poverty rate. A foundation for the small-sized business has been set up as well with aims to grow up those people based in 152 khoroos (smallest administrative unit in UB) with no big experiences in business and pledge money, to improve the employment and people’s livelihood. Key purposes of the contract are to strengthen collaboration of state organizations, to improve effectiveness of the programme, to fortify capability of newly-established cooperatives, and to prevent any business risks for them. By the programme, financing of MNT 15.2 billion will be granted to new business. Savings-and-credit cooperatives that satisfied the criteria are able to take the one-per cent-interest loan per year, and these cooperatives will give loans to fresh businessmen with interests of 1.2% per month and 11.4% per year. For the time being, the foundation of small-sized business has given to 610 projects financing of MNT 2.5 billion so far through 32 savings-and-credit cooperatives in 42 khoroos. By doing so, 451 new job places have been created, and 857 vacancies are awaiting new people. After the signing ceremony, Mr Bat-Uul expressed his satisfaction with starting the cooperation in supporting small-sized business. He said that financial service is the first big problem which is faced to those who begin small business, therefore the capital city is supporting them with a specific policy. In a scope of the collaboration, the sides will cooperate in backing small- and middle-sized productions in the next round.