Loan repayment plan to benefit farms, fisheries

The National Assembly¡¯s Agriculture, Forestry, Maritime Affairs and Fisheries Committee has decided to lower the interest rate on 10 trillion won in farm relief to farmers and fisheries from 11~12 percent to about 6.5 percent for the next five years. The measure comes as a part of a set of special laws aimed at reducing debt among farm and fisheries workers. The measure allows those in both industries to repay their debts, estimated at 3.9 trillion won, over a longer period of time. Their loans, which have due dates between 2001 to 2003, will now be repayable over a seven-year term, the first two years will be devoted to paying off interest and the rest to making good on the principal. Those who meet the debt repayment schedule will receive a 20 percent reduction in interest payments.

With regard to the 1.1 trillion won in aid earmarked for next year at a rate of 6.5 percent, farmers will be expected to pay down the interest alone for the first two years and make payments against the principle for the following three years.

For those farm and fisheries workers who were co-signers of loans whose primary debtors were unable to make debt repayments, they will be eligible to receive special loans at 6.5 percent interest from a 550 billion won relief fund. Interest on the special loans is to be repaid over three years, while repayment of the principle is to be completed over the following seven years.