Green loans to be provided to individuals

Ulaanbaatar /MONTSAME/ The Ministry of Environment and Tourism and the National Committee for Environmental Pollution Reduction signed an agreement on Green loan with three commercial banks on August 15. The loan is targeted to finance the home insulation, electric heating and eco toilets of ger area residents. The commercial banks are financing it from their own funds, while the National Committee for Environmental Pollution Reduction will subsidize 9 percent of interest rates to support green purchases. According to the MNT 3 billion loan agreement, the individuals will be able to get a loan up to MNT 40 million with 0.7 percent interest rate from State, Xac and Khan banks. The loan is given only to individuals and it must be spent exclusively on heaters, home insulation and eco toilets. Minister of Environment and Tourism N.Tserenbat noted “Due to limited funding, it was decided to monitor the outcomes of the Green loan project in the selected area. Households near Gandan will be able to get the loan first. The banks will provide the loan in accordance with their requirements. In addition, we will require long term guarantee from the suppliers. In the future, we will make every effort to provide 200 thousand households in ger area with the Green loan.” According to the Government Resolution No. 157 of 2018 to support the use of energy efficient heaters, four types of air purifiers and 10 types of energy-efficient heater have been exempt from Customs and Value Added Tax.