The Government does not favor a proposal from a group of MPs led by S. Byambatsogt and J. Sukhbaatar to adjust the outstanding amounts owed by herders to banks against the MNT1.5 million it is committed to distributing to citizens. Byambatsogt has told media that herders’ debts now stand at MNT64 billion and they are suggesting that the Government sells bonds to the creditor banks to clear the dues, redeeming the bonds when it is ready to distribute MNT1.5 million to every citizen, who will include the indebted herders. He is surprised at the government’s lack of support this as the debts keep increasing with every passing day.
According to official figures computed by the National Emergency Management Authority, 6,400 herder households in 21 provinces have totally lost their livestock. This has made it impossible to repay their loans. Of the total MNT64.1 billion that 170,000 herders owe to banks, MNT58.3 billion is due to Khan Bank, MNT4.9 billion to Mongol Shuudan bank, and MNT0.4 billion to XacBank.
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