Government to Cover Interest on 220 Billion Herdsmen Loans
Government of Mongolia to Bear Interest Payment for Herdsmen’s Loan
Today, a regular meeting of the government of Mongolia took place, focusing on the repayment of the herdsmen’s loan. During the meeting, decisions were made and presented by Amarbayasgalan.D, Head of the Government Secretariat.
Amarbayasgalan.D announced that the government has agreed to cover the interest payment for the herdsmen’s loan. Despite the herdsmen’s reluctance to have the loan canceled, they requested a postponement of the repayment. After careful consideration, the government has decided to extend the repayment period by one year and delay the payment of interest by one year.
With this decision, the interest accrues on the loan, which carries an interest rate of 20.5 percent. While the herdsmen will be responsible for paying six percent of the interest, the government will cover the remaining 14.5 percent. In total, there is a herdsmen’s loan amounting to 1.3 trillion MNT in the country, with an estimated interest savings of about 280 billion MNT. The government has committed to settling the remaining 220 billion MNT.
This decision reflects the government’s commitment to supporting and assisting the herdsmen in Mongolia during these challenging times. By bearing the interest payment, the government aims to provide relief and alleviate the financial burden on the herdsmen.
