There is strong demand for loans that fit the needs of businesses working in the forestry sector, including companies, NGOs, cooperatives, and partnerships. At the same time, banks want to increase reliable clients and expand their reach. To connect these needs and discuss new loan products that match the sector’s special features, a face-to-face meeting was held today at the State Bank’s conference hall.

The Billion Tree Fund suggested that the State Bank create a special unit with loan experts and economists trained in forestry so that forestry businesses can go to one place for faster processing and shared information. Around the world, people now support green development and green finance, and the idea that forestry means only planting trees is now outdated. In many developed countries, custom planting services are growing, and the Billion Tree Fund’s Executive Director, B. Bayarmaa, encouraged State Bank to take this opportunity and become active in this free business space.

The meeting also highlighted that cooperation should not be seen only through loans. Because forestry work happens outdoors, insurance is also important. For this reason, leaders from “Monre Insurance” LLC were invited so that four sectors—funding, banking, forestry, and insurance—could explore a balanced cooperation model.

The forestry sector not only helps climate adaptation but also successfully links with health, tourism, beauty product production, and construction, showing strong business examples.

For instance, China supports its forestry sector through policy. As a result, it supplies valuable raw materials for high-quality health and beauty products, creating mutual growth and wealth. South Korea has also linked forestry with tourism, turning parks and forest development into profitable services.

Therefore, representatives from the forestry sector stressed that Mongolia’s banking sector should recognize forestry as an economically important field. The State Bank brought its top loan experts to the meeting, introduced its green loan products, and noted that while they used to require various land-use papers, now banks are more flexible as long as income for loan repayment is clear. Forestry clients are invited to consult bank economists who can find suitable products for them.

The forestry sector requested that banks organize field visits with loan economists to better understand their work and develop new loan products. They also pointed out that carbon credits are becoming important, and if banks enter this area, it could create new investment opportunities.

Mongolia’s forests cover 8% of the country (19 million hectares), and under the Billion Tree National Movement, the goal is to increase this to 9%. Over 1,000 entities—companies, cooperatives, forest units, and NGOs—need flexible, low-interest, long-term loans. Banks, meanwhile, want to expand green loan portfolios and better understand their customers’ needs.

For this reason, the Billion Tree Fund organized its first effective networking event to explore how loans and insurance products could be designed to meet both sides’ demands. The forestry sector welcomed this meeting. Discussions on creating new banking and insurance products suited to forestry will continue next year, and both sides agreed to organize field visits to show how forestry businesses operate.

Мэдээ Зарлал

Хуваалцах Жиргэх