Minister of Food, Agriculture, and Light Industry Iderbat Tsagaankhuu signed agreements with five commercial banks on Monday to provide concessional loans totaling MNT 85 billion. These concessional loans will support the procurement of wool and hides under the “White Gold” national movement. Khan Bank, Trade and Development Bank, XacBank, Golomt Bank, and State Bank will issue the preferential financing. Consequently, the initiative aims to provide wool and leather processors with working capital for raw material purchases.
The ministry expects these concessional loans to improve production performance at processing factories. Furthermore, they will enable factories to purchase raw materials from herders in a timely and uninterrupted manner. As a result, production capacity is set to increase significantly. Moreover, the reduced loan interest costs will lower overall production expenses. This reduction will also enhance the competitiveness of finished products in both domestic and international markets.
Meanwhile, the initiative will directly benefit herders across Mongolia’s vast livestock regions. It will increase the value and income generated from agricultural raw materials like wool and hides. Additionally, the financing will help ensure that livestock-derived raw materials do not go to waste. Instead, they will become fully utilized inputs for value-added products. Therefore, the program strengthens the foundation for producing goods that meet international standards.
The “White Gold” movement aims to accelerate the development of Mongolia’s livestock and light industry sectors. In particular, it focuses on supporting domestic manufacturers with reliable access to affordable capital. The concessional loans represent a concrete step toward achieving these goals. Moreover, the five banks have committed to working closely with the ministry to ensure smooth implementation.
Looking ahead, officials plan to monitor the impact of the concessional loans on raw material supply chains. They hope the program will stabilize prices for both herders and processors. If successful, the government may expand the initiative to other agricultural commodities. For now, the signing marks a significant boost for Mongolia’s wool and leather industries. The concessional loans offer a practical tool to turn the “White Gold” vision into measurable economic gains.
