MNT 216 billion provided to seniors who had no pension loan debts

2021-06-07 12:14:49

Ulaanbaatar /MONTSAME/. In January 2020, the Parliament of Mongolia, State Great Khural, approved a law on one-time cancellation of pension-backed loan debts and other accompanying regulations. The one-time cancellation of pension-secured loan debts under the 2020 law was subject to outstanding pension loan balance of up to MNT 6 million and pensioners who hold debts more than MNT 6 million were required to pay off the remaining amount themselves.

As for around 194,000 pensioners, who did not borrow money out of their state retirement fund savings until the end of December 31, 2019, the government had pledged to distribute vouchers for government bonds worth MNT 1 million to them by May 2021. 

CEO of Erdenes Mongol LLC D.Khayankhyarvaa has informed that the company has recently completed distributing a total of MNT 194 billion as bond vouchers - each MNT 1 million to around 194,100 pensioners who had not any pension-secured loan debts. Moreover, MNT 21.4 billion has been given to 43,900 pensioners who had pension loan debt balance of less than MNT 1 million. As a result, some MNT 216 billion of funding has been spent for the distribution of bond vouchers.  

In February 2020, another MNT 695 billion was spent for paying off pension-backed loan debts that were due to be paid by around 228,500 pensioners. A total of MNT 911 billion was spent for the implementation of the law on one-time cancellation of pension-backed loan debts and other accompanying regulations with about 466,500 pensioners as beneficiaries. The funding was made available through commercializing the Salkhit silver and gold mine revenues.