The State Bank starts issuing pension loans

Politics
baljmaa@montsame.gov.mn
2020-02-20 19:06:48

Ulaanbaatar /MONTSAME/. In connection with the one-time forgiveness of pension-backed loans approved by the Parliament, commercial banks stopped issuing pension loans since January 1. 


Following the announcement by Parliament Speaker G.Zandanshatar that the pension-secured loan debts of more than MNT 6 million were paid off, the State Bank of Mongolia started issuing loans to pensioners against their retirement contributions starting today, February 2020. The loan has a term of six months and an interest rate of 1.4 percent.  


Minister of Labor and Social Protection S.Chinzorig has informed that the government has been discussing about the pension loans with the commercial banks. However, pension-backed loans are products of commercial banks and it is their choice to continue providing them to senior citizens.