Due to the rapid decline of the economy and rising short-term difficulties for businesses as a result of COVID-19, business advocate organizations and associations have released a joint statement demanding immediate, comprehensive measures be taken and that the proposals put forth by the Mongolian National Chamber of Commerce and Industry (MNCCI) to mitigate risks and protect business and employment be implemented.
Ten organizations announced that have joined efforts, including the MNCCI, BCM, Mongolian Bankers Association, Ulaanbaatar Chamber of Commerce, and International Women’s Federation of Commerce and Industry Mongolia.
International organizations are in agreement that the world is facing a difficult situation due to COVID-19 pandemic, with expectations that it will impact the economy in an unprecedented manner. Many governments and central banks around the world have announced emergency measures to support their economies.
Likewise in Mongolia, due to disruptions in operations, many SMEs, service organizations, and other businesses are increasingly facing difficulties much more rapidly than anticipated, such as when it comes to loans, interest payments, fines, late fees, social insurance fees, taxes, rent, and employee wages. Given the circumstances, we could see unemployment climb to 20 percent, compared to 11 percent in prior economic crises; mortgage and consumer loan repayment would fall; and the economy would not recover quickly.
Therefore, based on the MNCCI’s survey on business impact, meetings held with business representative organizations, and proposals by their member organizations, we are delivering this set of proposals to mitigate economic risks to the Government, State Great Khural, President, and National Security Council.
We believe it is absolutely essential that each proposed measure be implemented immediately in order to protect businesses and employment, and to mitigate risks to the economy and business, so that we may overcome the situation with minimal losses.