Loans to be provided to support agriculture
3-percent interest rate employment support loans totaling MNT 639.3 billion have been given to 9,304 borrowers.
Of the total loan amount, businesses borrowed MNT 353.3 billion and citizens MNT 286 billion. Commercial banks have received applications for loans totaling MNT 5.5 trillion. Applications for loans worth MNT1.7 trillion are currently being evaluated, reported N. Manduul, Director of Financial Policy Department of the Ministry of Finance.
MNT 310 billion loans have been issued to 1,766 borrowers with repo financing from the Bank of Mongolia. In addition, mortgage loans totaling MNT 233 billion have been issued to 3,170 borrowers. The Ministry of Finance also reported that conditions have been created for the issuance of loans totaling MNT 500 billion to be given to those in the agricultural sector starting this week, as part of the ‘MNT 10 trillion comprehensive plan for economic recovery. In this regard, commercial banks have begun accepting applications from borrowers. The agricultural sector support loans are classified as follows:
- MNT 100 billion for spring cultivation (loan term: 1 year);
- MNT 200 billion for cashmere production (loan term: 1 year);
- MNT 200 billion for herder support (loan term: 3 years).
Loans for spring cultivation will be given to farming businesses to help them build their current assets for stability and for additional financing for the same purpose.
To maintain the stability of the business activities, cashmere loans will be given to businesses engaged in cashmere combing or next processing stages for the purchase of raw materials, while herder support loans will be provided to herders and livestock owners on the terms of similar products the bank offers.