At today’s cabinet meeting, a decision to postpone the loan repayment and the loan interest of herders’ loan by one year. In relevance, interests will be retained in the commercial banks. Therefore, it was regulated that 6% of herder loan interest will be paid by herders and the government will pay the rest.
The average loan interest rate of herder’s loan is 20.5%, and one herder has an average loan of MNT 10 million. And the total amount is MNT 1.3 trillion nationwide. It has been estimated that the accrued interest will be around MNT 280 billion. The government has decided to pay the interest amounting to about MNT 220 billion.
The President of Mongolia made a request to the Government to provide discounts on interest payments for herder’s loan and to extend the repayment term.
-What is the reason for postponing the repayment of herder’s loan?
-Currently, there is a real situation of interruption of the income of herders. Due to the high risk of interruption of income from meat sales and wool cashmere, the loan repayment period is being postponed. As part of this decision, the Minister of Finance made a discussion with the Bank of Mongolia and commercial banks and will submit a draft resolution to the Cabinet meeting next week.
At today’s cabinet meeting, a decision to postpone the loan repayment and the loan interest of herders’ loan by one year. In relevance, interests will be retained in the commercial banks. Therefore, it was regulated that 6% of herder loan interest will be paid by herders and the government will pay the rest.
The average loan interest rate of herder’s loan is 20.5%, and one herder has an average loan of MNT 10 million. And the total amount is MNT 1.3 trillion nationwide. It has been estimated that the accrued interest will be around MNT 280 billion. The government has decided to pay the interest amounting to about MNT 220 billion.
The President of Mongolia made a request to the Government to provide discounts on interest payments for herder’s loan and to extend the repayment term.
-What is the reason for postponing the repayment of herder’s loan?
-Currently, there is a real situation of interruption of the income of herders. Due to the high risk of interruption of income from meat sales and wool cashmere, the loan repayment period is being postponed. As part of this decision, the Minister of Finance made a discussion with the Bank of Mongolia and commercial banks and will submit a draft resolution to the Cabinet meeting next week.