According to the Governor of the Bank of Mongolia (BoM) Lhavgasuren Byadran, the commercial banks have decided to postpone the repayment of mortgage loans worth about MNT 500 billion.The banks have also restructured more than 37,000 loans that have been encountered difficulty to repay due to the new strain of COVID-19 outbreak. The BoM emphasized that commercial banks have the opportunity to finance mortgage loans from their own resources to the extent of financing provided by the central bank. BoM and commercial banks will provide MNT 25 billion each, or a total of MNT 50 billion, for mortgage loans in May. In the remaining months of this year, the central bank will provide MNT 20-25 billion in mortgage loans every month. In line with the central bank’s order, commercial banks are required to limit the amount of funding provided by the Bank of Mongolia by MNT 100 million, to provide at least 25 percent of the total funding to individuals buying apartments in rural areas, and to finance only new loans.

Published Date:2020-06-15