Agricultural and Livestock Management Fund Interest Rate Reduced from 2.5% to 1.5%, Extended Until Year-End

Supplementary Budget Financial Support Measures
"Expected to Alleviate Farmers' Financial Burden"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will extend the interest rate reduction measure on agricultural and livestock management funds, implemented as part of the COVID-19 response, until the end of the year.

The Ministry of Agriculture, Food and Rural Affairs announced on the 2nd, "To alleviate the management burden on farmers caused by COVID-19, the interest rate reduction and repayment deferral measures for major policy funds, which were implemented on August 10 last year, will be extended until the end of this year." This measure was approved at the Cabinet meeting held on the same day.

The loan interest rates for agricultural and livestock management funds and comprehensive agricultural funds (operating funds) will be reduced from the existing 2.5% to 1.5%, and for agricultural machinery purchase funds and rural convergence industry funds, from 2.0% to 1.5%, applicable until the end of the year. Since the interest rate reduction measure is applied uniformly through the electronic system for the relevant funds, farmers and others do not need to apply separately to lending institutions.

Additionally, for long-term facility loans with repayment dates that have passed since January 1 or that will fall between the 3rd and December 31, principal repayments will be deferred for one year. If the principal repayment date has passed or is currently overdue, borrowers can visit the relevant agricultural cooperative or NongHyup Bank to apply.

Kim Jeonghee, Director of Agricultural Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, "We hope this measure will help ease the financial burden on farmers struggling due to COVID-19 damage," and added, "Lending institutions such as NongHyup will thoroughly promote the interest rate reduction and repayment deferral measures and handle loan processing diligently."