COMMERCIAL BANKS ISSUING LOANS TO NON-MINING EXPORT AND SMES

The Bank of Mongolia (BoM) has provided funding of MNT 175 billion to Khaan, Khas, Capitron, Transport Development, Bogd and State Banks in accordance with their submitted requests. 

 

With its resolution No.5 dated September 14 and resolution No.6 dated November 23, the BoM Monetary Policy Committee decided to announce 2-year repo trading with an aim to provide long-term financing for non-mining exports and SMEs.

Moreover, it was decided to provide a financing of MNT 230 billion in total in the fourth quarter of 2020 and the BoM announced its first long-term repo trading on November 30.

 

The banks will spend the funding for re-financing normal loans issued in MNT to entities operating in non-mining export and small and medium sized production sectors that meet requirements approved by the BoM and issuing new loans.

 

As a result, the entities are now available to submit requests to the afore-mentioned banks for reducing loan interest to less than 10.5 percent and exempting from principle payment of loan for less than six months of period. 

 

 

Source: https://montsame.mn/en/read/245865