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Government to support agricultural industry with MNT 500 billion of loans www.montsame.mn

Ulaanbaatar /MONTSAME/. With a view to alleviate the negative effects of the COVID-19 pandemic on the economy and population health, the government of Mongolia has approved MNT 10 trillion comprehensive plan for economic recovery and health protection.
Within the framework of the plan, soft loans totaling MNT 500 billion will be granted to support the agricultural industry and the required funding for it has been settled, according to the Ministry of Food, Agriculture and Light Industry.
Out of the MNT 500-billion loans, MNT 200 billion worth of loans will be provided to companies for cashmere production for the spring season of this year, MNT 100 billion loans for farming productions, and MNT 200 billion will be aimed to support livestock herders.
Commercial banks will issue loans amounting to MNT 200 billion sourced from the Ministry of Food, Agriculture and Light Industry in cooperation with the Development Bank to companies engaged in cashmere preparation and cashmere manufacturers.
Also, funding was made available by the ministry for loans worth MNT 100 billion for crop farming companies for their spring planting and fall harvesting. Both types of the loans will have a 1-year term and 3-percent interest rate per annum.
The MNT 200 billion of loans to support livestock herders and revive the animal husbandry will also be issued through commercial banks and will have a term of 3 years and annual interest rate of 3 percent. Priority areas targeted by the loans are industrial livestock production, dairy production, production of raw materials of animal origin, pastureland protection and livestock water wells, as reported by the Agricultural Ministry.


Published Date:2021-03-02