Ulaanbaatar
Draft resolution on strategy to reduce loan interest rates presented
Politics
Ulaanbaatar /MONTSAME/. On August 20, MPs B.Battumur, Kh.Bulgantuya, G.Amartuvshin, and Ch.Undram presented a draft resolution on ‘Approval of strategy to reduce loan interest rates’ to Speaker G.Zandanshatar.
The draft reflects detailed measures on creating a stable macroeconomic environment, reducing loan risks and costs, verifying the right to demand for those involved in loan agreements, urgently providing performance of duties, and reducing the work costs of bank and financial institutions. Alongside specific measures to be implemented within the rights of the government, central bank, and the Financial Regulatory Commission, it also includes directions on developing drafts to renew legislation, such as creating the legal framework on the conditions and requirements to create long-term sustainable financial resources.
Developed with a comprehensive study on loan interest components and the factors affecting it, framework of measures are defined within legal rights and goals of the Government, the Bank of Mongolia, and the Financial Regulatory Commission, and based on corresponding studies on finance, economy, and legislation. Moreover, positions and suggestions by the banks which are subject to the resolution are considered and the resolution will not have a direct effect on the state budget following its approval.
