The Chief
of the SME Office, Ts.Nyam-Osor, has told the Uls Turiin Toim newspaper that
the MNT24 billion in the Production Development Fund will be spent on setting
up and strengthening SMEs in soums all over the country. Each soum will be
allocated between MNT50 million and MNT265 million, depending on its
population. The loans will carry 3% interest and will be for three years.

The SME Office has so far distributed between MNT400 and 500 million in the
aimags. Nyam-Osor said some 1,200 organizations have benefited from the exemption
from customs duty and VAT to equipment imported by SMEs for their use. All
aimags have established brick factories, and bread and 20 other types of goods
are now extensively produced in the countryside. More vegetables are also being
grown.

The SME
Office has a list of 256 items that can be produced by SMEs in the countryside,
and has helped set up 196 factories in the last two years. Repayment rates have
been very good in the countryside and many entrepreneurs who took and repaid loans
between MNT10 and 20 million are demanding up to MNT70 million.