Banks defer repayments on MNT 500 billion of mortgage loansEconomy
Ulaanbaatar /MONTSAME/. With a view to alleviate financial challenges posed by COVID-19 pandemic on business entities and individuals, the government of Mongolia together with the Bank of Mongolia and commercial banks has approved decisions to make 6-month deferrals on consumer and business loan repayment and their interests for 90 days, and to extend the repayment of mortgage loans by six months.
Governor of the central bank B.Lkhagvasuren has recently informed that commercial banks have allowed to defer repayment of mortgage loans worth MNT 500 billion in total since the decision was issued.
Moreover, deferral of repayments for over 37,000 loans of customers, who are experiencing financial hardships as a result of COVID-19, has been allowed by commercial banks.
It has also been reported that the central bank has made necessary improvements in the mortgage loan program, such as limiting the loan funding provided by the Bank of Mongolia for each mortgage lender to MNT 100 million, granting not less than 25 percent of total mortgage loans to apartment buyers in rural areas, using the loan funding provided by the central bank for new mortgages only, and issuing 15 percent of the loan funding by the central bank to civil servants, which are deemed to facilitate access to mortgage loans.
The Bank of Mongolia has resolved to issue monthly allocation of MNT 20-25 billion for the mortgage loan program and commercial banks will also provide funding of not less than the sum provided by the central banks to mortgage loans.