Mongolian Government to Subsidize Cashmere Purchases

Because banks have been charging high interest rates, cashmere sales have slowed recently in Mongolia. Currently, herders are currently holding more than 2,000 tons of cashmere. In response, Montsame reports that the government of Mongolia is guaranteeing loans of MNT 10 billion to cashmere processing facilities to purchase from the herders. Sixty percent of that money is going to the Gobi Cashmere company.