The Standing Committee on the Economy in parliament discussed the Government bond that was designated to support tanneries and approved it during today`s meeting.

Currently there are 35 tanneries and 178 processing factories operating in Mongolia. Herders supply 178 million skins to these tanneries. Domestic producers process only 25 percent of this supply and foreign tanneries buy 75 percent.

The reason for this small national production is lack of circulating capital and in-ability to maintain enough reserves during peak time.

Therefore the Standing Committee on Economy decided that the Government should issue a 200 billion MNT bond for 5 years. The Standing Committee on Economy estimates that 25,000 jobs and 460 million MNT products would be created and benefits reaped would be 1 trillion MNT.