Bill on repayment of pension-backed loan to be submitted

2020-01-06 16:39:36

Ulaanbaatar/MONTSAME/. The Cabinet today decided to submit a Bill on a full and one-time repayment of all pension loans to the Parliament for a very urgent consideration.  

Out of the 421.1 thousand pensioners that are currently receiving pensions, 229.4 thousand pensioners (54.5 percent) have taken loans worth MNT 763.3 billion in total. It is considered that elderly people who have no earning except their pensions receive pension loan and pay loan interest; thus they are likely to easily suffer poverty. For the reason of their incapability to meet their daily necessities, the seniors get loan again and have no way of getting out of the loan debt. It leads them to the ‘circle of debt’ and undergo financial and psychological pressure.

The repayment of the remainders of the pension loans is planned to be resolved by means of issuing bonds by putting the expected profit from Mongolian government’s share at Salkhit deposit as collateral.

Salkhit deposit has an identified reserve of 808.3 tons of silver and 1117.1 kg gold that are estimated to have a net profit of MNT1050.4 billion. Further, pension loan issuance is intended to be completely stopped.

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