MNT 200 billion disbursed to commercial banksEconomy
Ulaanbaatar /MONTSAME/. According to the Monetary Policy Committee's decision to provide long-term repo financing of MNT 250 billion in the first quarter of this year, a total of MNT 200 billion was disbursed by the Bank of Mongolia to Khan, Trade and Development, Golomt, Khas, Transport Development, Bogd, Capitron and Credit Bank yesterday.
To improve the economic impact of long-term repo financing, the Bank of Mongolia has increased the maximum loan amount for small and medium enterprises to MNT 3 billion and the banks will issue loans of up to MNT 3 billion with a term of two years and an interest rate of 10.5 percent per annum to small and medium enterprises, individuals and non-mining exporters in accordance with the criteria approved by the Governor of the Bank of Mongolia on February 19.
Therefore, the central bank informed that customers who meet the criteria set by the Bank of Mongolia can apply to these banks for new loans and loan refinancing.
To reduce the negative impacts of the pandemic on the economy, the Bank of Mongolia launched the two-year loan with 10.5 percent interest rate to small and medium enterprises and non-mining exporters in the fourth quarter of 2020 using long-term repo financing. In this framework, MNT 230 billion repo financing, provided in December 2020 was used by banks to issue new loans and loan refinancing to 1,536 companies with more than 20,000 employees.