Agreement Signed to Implement Soft Loan Program for Herders

2024-05-08 15:18:49

Ulaanbaatar, May 8, 2024 /MONTSAME/. The Agreement on Offering Soft Loans to Herders Affiliated with Cooperatives as part of the “New Cooperative-Wealthy Herder” Program was signed by Governor of the Central Bank of Mongolia Lkhagvasuren Byadran, Chief of the Cabinet of Mongolia Amarbaysgalan Dashzegve, and Minister of Food, Agriculture and Light Industries of Mongolia Bolorchuluun Khayangaa on May 8, 2024. Under the Program, herders who became members of cooperatives will be given MNT 5 trillion in soft loans until 2029 in collaboration with commercial banks, and this year MNT 500 billion in loans will be issued. The cost of funds of commercial banks exceeding a 6 percent interest rate will be financed by the Government and included in the Government’s annual budget.

The Central Bank of Mongolia noted that the Program would play a significant role in improving the livelihood of herders in rural areas, supporting the enhanced and value-added agricultural manufacturing sector, and elevating the agricultural and livestock sector.

The “New Cooperative - Wealthy Herder” Program is being implemented as part of the Parliament-approved Law on Mitigating the Negative Effects of Climate Change on Traditional Livestock Husbandry.

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