Banks Agree to Postpone Loan Repayment of Herders until June

2024-02-21 19:28:10

Ulaanbaatar, February 20, 2024 /MONTSAME/. Due to the severe winter conditions in Mongolia, the Government has declared a heightened state of preparedness throughout the country, and six emergency groups headed by Ministers are working in the countryside. During his working trip to the countryside, Mr. Amarsaikhan Sainbuyan, Deputy Prime Minister of Mongolia and Chairman of the State Emergency Commission had the most requests that were related to herder's loan.


Therefore, today the Deputy Prime Minister has met with officials of the central bank and commercial banks to discuss the possibility of postponing the loan repayment and reached an agreement.


President of the Bank of Mongolia, Mr. Lkhagvasuren said "The agriculture sector experienced a decline in 2023 and the request of postponement of herders loan repayment keeps coming. The Central Bank is ready to provide policy support.”


A total of MNT 1.2 trillion in loans provided to 140 thousand herders are registered in the database of the Bank of Mongolia, 51.2 percent or MNT 618 billion of which was issued by State Bank and 48.5 percent or MNT 585 billion by Khan Bank.


Khan Bank has already started to postpone the repayment of the loan of the herdsmen who applied after December 1, 2023. State Bank has agreed to postpone the repayment of the loan until June 1, 2024.


The National Reinsurance Company also expressed that it would pay compensation for indexed insurance of the herdsmen insured between September and October of last year.