Repayment of soft mortgage loans postponed temporarilyEconomy
Ulaanbaatar /MONTSAME/. The Bank of Mongolia, the Ministry of Finance, the Mongolian Mortgage Corporation HFC LLC and other commercial banks have made a decision to support people who have received soft mortgage loans from the government. The decision regulates the mortgage loan repayment as following:
- If a borrower with a mortgage interest rate of 8 or 5 percent applies for a change in the loan repayment schedule, the principal and interest payments should be deferred once for up to 3 months and the loan repayment schedule should be extended for that period;
- This arrangement can be applied to borrowers who have a default on their loan repayment after January 31, 2020, and the deferral period should be calculated based on the date, when the default occurred;
- The borrower must apply to the relevant bank before May 1, 2020 to make changes to the loan repayment.
The Bank of Mongolia is implementing necessary measures to reduce the negative impact on the economy, banking and financial sector during the "COVID-19" pandemic in accordance with the experience of other countries and relevant legislation. Within this framework, banks have been given the opportunity to independently resolve the issue of changing the repayment terms of borrowers, classifying non-performing loans, and temporarily reducing credit history. This allows borrowers to maintain the borrower's loan classification in the event that they are unable to repay the principal and interest on a temporary basis, and not to reduce the classification in the Credit Information Database.