THE GOVERNMENT TO LEND MNT 150 BILLION IN CREDIT TO HOTELS

Next year, the Asia-Europe-Meeting (ASEM) will take place in Ulaanbaatar. Within the framework of preparing for the ASEM, the Mongolian Government has decided to technically upgrade the transport, hotels in the special secure “Ikh Tenger” zone.

Approximately 5000 guests will visit Mongolia, including the heads of state, foreign ministers, and representatives of international organizations, media and security of 51 countries.   An overview of the hotels reveals; there are a total of 450 hotels in total of which only 59 have star classification. The Government concluded that 45 hotels are satisfactory. In order to improve the remainder, the Government has decided to lend MNT 150 billion in credits via commercial banks; the source being the Development Bank. Credit will be provided for 5 years at a rate of7-9%. This investment (credit) to the hotels is not only for the ASEM; it will also provide a big stimulus for Mongolian infrastructure in attracting high-class guests and tourists.

During the regular meeting, the Government also discussed transportation for the guests. A large number of cars will be required to transfer the leaders of the 51 countries. Therefore, the Organizing Commission has stated the plan to buy new vehicles from Japan’s “Toyota Corporation”.  The source of financing will be decided in the few days.

Source: news.mn