GOVERNMENT TO CARRY OUT A SALARY LOAN PROGRAM FOR SOME PUBLIC EMPLOYEES
During Cabinet’s weekly Wednesday meeting, its ministers discussed lowering the interest rate for salary loans for teachers working at public schools and kindergartens, and the doctors and staff of public hospitals.
During the meeting, Minister of Labor and Social Protection N. Nomtoibayar introduced the ministers to the work the ministry is doing to reduce interest on salary loans for teachers and doctors, and to eliminate the fees banks charge for issuing loans.
The Minister stressed that the ministry has met twice with the heads of State Bank to lower interest and fees for loans, noting that State Bank’s annual interest rate for salary loans will drop from 21.11 percent to 18 percent.
He noted that State Bank expects to issue loans of 48.2 billion MNT to 8,316 teachers, doctors, and medical workers, and to provide them with lower interest and fees amounting to savings of up to 1.6 billion MNT a year.
Minister N.Nomtoibayar pointed out that representatives of the ministry are also negotiating with Khan Bank to provide teachers, doctors, and hospital staff with more favorable loan terms.
Following the minister’s report, Cabinet agreed to support the loan program.