Mortgage repayment deferral support to continue until end of year www.montsame.mn
The Parliament of Mongolia, at its plenary session dated June 29, 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, 2021.
In order to ensure effective implementation of the law and provide support to households amid the pandemic restrictions, 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, 2021.
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.
Published Date:2021-07-07