North Hwanghae’s provincial people’s committee plans to facilitate bank loans to farms for spring planting, Daily NK has learned.
According to a source in the province, on Jan. 20 the committee directed farm managers to secure bank loans for spring preparations, with the option to repay the principal at low interest rates after the harvest.
The committee instructed farm managers to open bank accounts and obtain funding through state-run banks rather than turning to private lenders who charge exorbitant interest rates.
“These directives specifically aim to address problems that arise when farms borrow from private lenders each spring,” the source explained.
The committee highlighted how farm managers are facing financial strain from accumulating high-interest debt to private lenders. They also noted a concerning pattern where managers and work team leaders set aside portions of the harvest for themselves, supposedly to repay these private loans – a practice that further disadvantages ordinary farm workers.
“Farm attendance is already low this January,” the source said. “Workers received insufficient food from the fall harvest distribution, so they’re taking other jobs to feed their families instead of showing up for farm work.”
In response, the committee has urged managers to secure bank loans promptly to address worker food shortages and implement measures to bring workers back to the farms.
“After discussions with the provincial party committee and banks, the committee has established that credit limits will be based on each farm’s production metrics,” the source said. “Managers will have the flexibility to repay loans and interest at minimal rates, either in grain or cash, following the harvest.”
January 31, 2025 at 08:09AM
by DailyNK(North Korean Media)