The Bank of Mongolia is jointly implementing a program called SIFS with the Mining Ministry in order to finance the importation of petroleum products at minimal expense, prevent from sudden price increases at the local market and ultimately, maintain retail prices paid by consumers.
In the framework of this initiative, Magnai Trade, one of the largest importers of petroleum goods in Mongolia, received a loan of MNT 14.6 Billion at an annual interest rate of 3.8% for a period of one year. The financing was provided through Golomt Bank.
This is the fourth loan issued to private companies by this particular program and the total amount of the financing is now MNT 41.4 Billion. It is hoped that these participating companies, having received a loan with favorable terms, will be able to maintain stability for retail prices on the fuel products regardless of fluctuations of the foreign currency rates.
More details about the “Price Stabilization Program” can be obtained at http://www.mongolbank.mn/pricestability.aspx.