Government to support agricultural industry with 500 billion MNT loan
- By Misheel Lkhasuren -
- Mar 06,2021
Within the framework of the government comprehensive plan worth 10 trillion MNT, soft loans totaling 500 billion MNT will be granted to support the agricultural industry. The funding scheme is settled, according to the Ministry of Food, Agriculture and Light Industry.
Out of the 500 billion MNT stimulus, 200 billion MNT will be provided to cashmere production this spring, 100 billion MNT for farming productions, and 200 billion MNT to support herders.
Commercial banks will issue loans amounting to 200 billion MNT, sourced from the Ministry of Food, Agriculture and Light Industry in cooperation with the Development Bank, to companies engaged in cashmere preparation and manufacturing.
The ministry has planned loans worth 100 billion MNT for crop farming companies for spring planting and fall harvest. Both types of loans will have a 1-year term and 3 percent interest rate per annum.
The 200 billion MNT planned for herders and revival of the animal husbandry industry will be issued through commercial banks and will have a term of 3 years and an annual interest rate of 3 percent. Priority areas targeted are industrial livestock production, dairy production, production of raw materials of animal origin, pastureland protection, and livestock water wells, reported the ministry.
The government approved a comprehensive plan worth 10 trillion MNT for economic recovery and health protection in response to the COVID-19 pandemic.