MEETING ABOUT INTERNATIONAL DIRECT INVESTMENT AND GUARANTEE IN THE CASHMERE INDUSTRY.
On January 31, 2024, Tilasoni Benjamin Musuku, Senior Specialist for Finance, Competitiveness and Innovation of the World Bank, and Jin Jae-yeon, Head of the Mongolia, Korea and China of the World Bank’s Multilateral Investment Guarantee Agency, discussed possible international direct investment in the wool cashmere industry and its guarantee, conditions, possible ways, and the experience of other developing countries were presented to M. Dondogdorj, Head of the Light Industry Policy Implementation Department of the Ministry of Food and Agrilculture, Light Industry, N. Erhembayar, Senior Specialist Light Industry and D. Altantsetseg, Executive Director of the Mongolian Wool and Cashmere Association, met and exchanged thoughts.
MIGA’s guarantee covers political instability, currency inconvertibility, transfer restrictions, government expropriation, war and civil disturbance (destruction or interruption of business due to political violence), breach contract (failure of government to honor obligations under contractual agreements and subsequent failure to honor arbitral award). One of the advantages is that the guarantee can be extended 2-3 times by issuing a 1-year warranty.
During the meeting, the MIGA, compared to other international guarantee institutions, borrower could get low-interest loans with the World Bank’s AAA rating, which indicates the lowest credit risk, regardless of the country’s credit rating, which provides to raise a low-cost investment from the global investment market. It is emphasized that it is completely possible to receive investments, which does not require the permission of the Government.
