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The MNCCI has presented a package of economic risk management

2020/03/25 0

5 packages and 20 suggestions of Economic Risk Management from MNCCI

  1. Sustainability of the macroeconomy. Macroeconomic sustainability
  2. Neutralize the negative impact of Covid-19 virus on the business
  3. Save jobs by supporting SMEs
  4. Promote the purchase and use of citizens
  5. Stabilize the supply of major foodstuffs

Ensuring macroeconomic stability

1. BOM shall take measures to reduce its policy rate and increase its market credit
2. Prioritize the public budget of 2020 by recognizing the insignificant investment costs, such as the MNT 220 billion budgeted for the construction of new rural cultural centers and the soum administrative office building this year

Neutralize the effects of Covid-19 virus on the business

3. Payment of the value-added tax, income tax and customs duty payable for at least 3 months, and no fines and penalties be imposed on the companies that stopped or restricted their activities, depending on the measure.
4. Delay in paying social security taxes for up to 6 months
5. Provide appropriate policies and guidelines from the Bank of Mongolia for a restructuring of loans provided by commercial banks to enterprises and updating their loan schedules.
6. Temporary discount, waiver, postponement of fees, commissions and fees for government agencies such as property tax and land fees
7. Policy Supporting Larger Enterprises With Some Discounts and Exemptions on Rent to Share Financial Risks in Business

Maintaining jobs by supporting SMEs

8. The state pays 50% of interest payments on loans up to 3 months for business purposes in certain sectors: trade, services, agriculture, processing industry, and construction. It is estimated that it will require about MNT 100 billion, which can be solved by spending from the state budget and the Fiscal Stability Fund.
9. Zero duty and value-added tax on imports of small and medium-sized enterprises until the end of 2020
10. Increase the maximum cost of goods, works, and services that can be directly purchased by the government as comparisons
11. Increase the number of loans provided by the SME Development Fund
12. According to the available sources of government funding, in keeping with the economic situation, the maintenance of old jobs and the normal operation of the operating enterprises.
13. Decide and implement a policy to encourage reduction and clearance of bank e-transaction fees in a timely manner by encouraging online purchases and online payments in situations of risk of virus spread.

Increase consumer purchasing power and promote the consumption

14. Division of Erdenes Tavan Tolgoi to distribute to shareholders about 200 billion tugriks in dividends within 4 months, distribute a certain percentage of dividends as a voucher to buy national production
15. Delayed of Payment of Social Security payable by individual payers for 6 months
16. Exemption from the taxpayer for the period of six months from the service tax specified in Section 7.2 of the Capital Tax Law

Stable supply of major foodstuffs

17. Delayment of principal and interest on a mortgage loan in the quarantine period
18. Government allowance for discrepancies with additional costs related to import and transportation of the main foodstuff from another country
19. Payment for value-added tax payable for at least three months
20. Decide on preferential financial resources for import of the main foodstuff
21. Increase the quota of imported wheat for local flour mills to 120000-150000 tonnes

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