COMMERCIAL BANKS TOLD TO HALT LENDING FOR PENSIONERS

In his New Year’s Eve address on television, President of Mongolia announced that a decision made by the members of the National Security Council on a full and one-time repayment of all pension loans by means of boosting the economic activities of the Salkhit silver mine, with the purpose of relieving debt pressure of the elders who dedicated their lives for the development and prosperity of Mongolia.

Concerning this, President of Bank of Mongolia has issued an order for commercial banks to halt issuing pension loans for an indefinite term. 

According to Bank of Mongolia, outstanding pension loan balance in a total of around 233 thousand loan accounts amounted to MNT 776 billion, as of November 2019. 

Studies also showed that around 91.8 percent of senior citizens in Mongolia have accounts in Khan Bank and State Bank of Mongolia.