Ulaanbaatar
Mortgage repayment deferral support extended
Economy
Ulaanbaatar /MONTSAME/. At its plenary session, the State Great Khural has extended the effective period of the Law on Prevention, Combat, and Reduction of Social and Economic Impacts of the COVID-19 until the end of December 31, 2022.
In
order to ensure effective implementation of the law and provide support to
households amid the pandemic, the Bank of Mongolia in cooperation with
corresponding organizations and banks decided to make deferrals on the
subsidized mortgage loans’ principal and interest repayment again until the end
of December 31, 2022.
With
a view to alleviate the financial hardship posed by COVID-19 pandemic on
businesses and individuals, who have been falling behind their loan dues, the
government of Mongolia together with the Bank of Mongolia and commercial banks
started fulfilling mortgage payment deferral requests in April 2020, regarding
the borrower's request, and to extend the loan agreement term without
increasing the amount of the remaining payment.
Upon
the decision to make deferrals on loan repayment and their interests, the Bank
of Mongolia has made temporary changes to regulations followed by commercial
banks on their asset classifications and requirements for their operations,
allowing the banks not to change their borrowers’ credit ratings caused by
failures on loan repayment.
