INTERNATIONAL FINANCIAL CORPORATION INTRODUCES “SUSTAINABLE FINANCING MECHANISMS”

The Bank of Mongolia and the Mongolian wool and cashmere association have established a working group to develop proposals and conclusions on supporting cashmere exports and establishing a sustainable financing system. Within the framework of this, on 8th November 2021 Batmunkh.B, Senior Financial Specialist of the International Finance Corporation held a discussion with the heads of major cashmere exporters and introduced to the Bank of Mongolia the financing mechanism for the cashmere mortgage loan and received the suggestions.
The two factor financing scheme is funded by the export factor, so the factoring request is made by the supplier of the goods and products.
The supplier financing system is a fast and efficient financial instrument for the production of cashmere raw materials through financial institutions. The financing schemes is a widely used international financial instrument in which the bank decides on the financing required by the buyers and transfers the cashmere payment directly to the supplier.
Furthermore, introduction of a sustainable financing mechanism in the cashmere sector, the establishment of a two factor financing system will improve the supply of raw materials and create many advantages for the cashmere sector to improve credit conditions.

November 8, 2021