“Loan interest rates decreased by 2.5 percent”Politics
Ulaanbaatar /MONTSAME/. On January 11, the State Great Khural’s Standing Committee on Economy heard a progress report for the implementation of the parliamentary resolution on the strategy to reduce loan interest rates, which was approved by the parliament on August 28, 2020.
Governor of the Bank of Mongolia B.Lkhagvasuren said, “A working group consisting of representatives from corresponding organizations was in charge of the implementation of the strategy. As a result, loan interest rates have continuously decreased so far. By the end of 2021, average loan interest rates decreased by 2.5 percent compared to when the strategy was approved in August 2020. Compared to the same period of the previous year, it has also decreased by 1.3 percent - and it currently stands at an annual rate of 14.5 percent.
As according to the plans drafted for the strategy’s implementation, an objective has been set to have annual loan interest rates be brought down to an average of 12 percent by the end of 2023. If we also account for the loan interest rates of other government programs, average interest rates have decreased to 13.8 percent which is a monthly rate of 1.15 percent.”