Category
- Agriculture
- Automobiles and Machinery
- Bank, non banking financing, investment
- Blasting
- Construction
- Consumables
- Education
- Energy
- Engineer , Architecture and Geodesy
- Finance, Audit,Accounting and Brokerage
- Food
- Foreign Trade
- Geology Exploration
- Health
- Information Technology
- Insurance
- Labor Safety
- Legal and Business consulting
- Lighting
- Mining equipment
- Mining Services
- Other product and service
- Road
- Sewing and textile products
- Transportations
- Travel
Events
Policy rate decline leads to an increase in domestic investment www.montsame.mn
In the first half of this year, macro economy has grown by 6.3 percent due to operations in the mining sector and the increase in commodity prices.
Specifically, the mining sector has grown by 24 percent, and net tax on products by 23 percent. During the presentation of the Q2 review and bank competitiveness report, the Mongolian Bankers Association reported that the growth in other sectors has slowed down.
In addition, in terms of demand, household consumption fell by 9 percent, while investment increased by 12 percent. The decrease in the policy rate has led to an increase in domestic investment. Due to the pandemic, export has declined in volume and shipping costs have increased five times compared to the pre-pandemic period. In July of this year, inflation increased by 7.4 percent in Mongolia compared to the same period of the previous year. Foreign shipping cost negatively affected inflation in various countries.
Economist of the Mongolian Bankers Association G.Batzorig said, “The Government announced the ‘MNT 10 trillion program’ to support the economy. In the first half of this year, total loans have been increasing due to the three percent interest rate loans and 9 percent repo financing. It has reached the point where one of every ten loans is non-performing. Overdue loans, which increased due to the four strict lockdowns imposed during the pandemic, is expected to decrease in the future.
Outstanding loan balance increased by 10 percent on average in the first half of this year, and the amount of new loans increased by 57 percent in the second quarter. In addition, loan packages have been rising since the beginning of the year. This was due to the MNT 10 trillion program.”
Published Date:2021-09-05
