Ulaanbaatar
MPs submit a bill to amend the COVID-19 Mitigation Law
Politics
Ulaanbaatar/MONTSAME/. On December 22, memders of the State
Great Hural (Parliament), MP Kh.Bulgantuya and MP J.Sukhbaatar submitted a bill
on amendments to the Law on Prevention and Response to the COVID-19 Pandemic
and Reducing the Adverse Effects on Society and Economy (COVID-19 Mitigation
Law) to G.Zandanshatar, Speaker of the Parliament of Mongolia.
Due to the ongoing pandemic COVID-19, the borrowers’
business activities have stopped, their incomes have been cut off, which makes them
unable to repay their loans, and their collaterals are devalued and depreciated
that are real risk faces today, officials say.
Today, lenders' (pawnshop) activities and loan contract
relations are regulated under Civil Code Article 286 and MNS 5274:2017 standard
issued by National Council for Standardization, which are not integrated
subject to the state control and regulations. Therefore, it is necessary to
pass a law on loan contract relations, say law initiators.
The bill cites to regulate the following relations:
- To calculate the
interest rate of the loan contract concluded between the Lender and the
Borrower for the period from November 12, 2020 to July 1, 2021 at 3 percent;
- During the period
of the loan contract concluded between the Lender and the Borrower from
November 12, 2020 to July 1, 2021, other increased interest, fees and charges
shall not be charged;
- During the period
of the loan contract concluded between the Lender and the Borrower from
November 12, 2020 to July 1, 2021, it is prohibited to ensure obligation
fulfillment by mortgaged property and if used, consider it a violation in
accordance with the Law on Violations;
- To accomplish measures obliged by the
Authority for Fair Competition and Consumer Protection;
Also, it was attached the Lender’s measures and obligations
to implement.
Source: parliament.mn
