Улаанбаатар
"New Cooperative - Wealthy Herder" Program to Be Intensified
Politics
Ulaanbaatar, September 11, 2024 /MONTSAME/. The Government of Mongolia has launched the "New Cooperative" Campaign to support the livelihoods of herder families through cooperatives. The campaign aims at stabilizing cash flow from animal and animal-derived raw materials and products. To achieve this, the Government approved a five-year plan for the "New Cooperative - Wealthy Herder" program. As part of this initiative, the Government also decided to provide investment loans to member herders of cooperatives.
Investment loans have been provided by commercial banks using their resources. The Government provided incentives for the interest rate variance, while the Credit Guarantee Fund of Mongolia provided 80-100 percent of the loan collateral.
As of today, soft loans totaling MNT 502.3 billion have been granted to 14,688 members of 4,466 cooperatives. Additionally, commercial banks are currently reviewing projects worth MNT 88.3 billion for 1,570 herders.
Based on the number of herders who are members of cooperatives eligible for soft loans and the loan amount requested for financing, the Cabinet decided to issue a total of MNT 1.0 trillion in soft loans in 2024. This decision follows amendments to the General Financing Agreement and its subsequent signing by the involved parties. Relevant members of the Cabinet and governors of aimags were instructed to intensify the "New Cooperative" Campaign at the national level.
