Ulaanbaatar
Banks Agree to Postpone Loan Repayment of Herders until June
Society
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.
