Parliament is set to approve the resolution on measures to ensure the balance of finance and economy, prevent risks and make electronic transition amid the COVID-19 pandemic.
In this regard, Speaker of Parliament G.Zandanshatar, Head of the Parliamentary Standing Committee on Budget B.Choijilsuren, members of Parliament B.Battumur, M.Oyunchimeg, Governor of Mongol Bank B.Lkhagvasuren, Head of the Financial Regulatory Committee D.Bayarsaikhan introduced the measures on April 10.
The working group headed by B.Battumur, B.Choijilsuren, and Kh.Nyambaatar, processed the resolution.
Speaker G.Zandanshatar introduced measures of the resolution
Stockpiling fuel
The measures aim to support suppliers with affordable import rate, to supply storage containers for fuel and petrol, and provide financing to entities that import standard fuel.
Reducing interest rates of loans and savings
The interest rates on loans with outstanding principal of up to 500 million MNT issued by a bank from its own resources will be reduced.
Supporting mortgage financing
Mortgage loan funding will continue to prevent from reducing loan quality in the construction industry and save jobs. The payment of principal and interest on mortgage loans with eight percent interest will be postponed for up to three months and the repayment period will be extended for three months again. In other words, mortgage payment will be postponed for six months. The government will provide two percentage point of the total annual nominal interest rate for three months for a borrower who meets requirements for the mortgage loan program but has not applied for a loan deferral. Moreover, a special mortgage loan program will be implemented for doctors, nurses and civil servants. An appropriate arrangement will be made to issue permits for construction companies in order to reduce costs in the issuance of asset-backed securities.
Stimulating activities of guarantee fund to support small, medium and micro businesses
The maximum guarantee limit for one borrower will be reduced to increase access to finance for small and medium enterprises and service providers, and provide a stable source of income.
Intensifying reform of banking sector
The range of e-bank activities will be expanded. Aimed to create a reliable, accessible and efficient banking system, a reform program of the banking sector will be developed.
Supporting implementation of Gold-2 national program to increase foreign reserves
Within the measure, concessional financing from foreign and domestic sources will be provided to gold mining companies.
Settling non-performing assets of liquidated banks for economic circulation
A joint working group of the State General Prosecutor's Office of Mongolia and the Independent Authority Against Corruption will be established to promptly settle non-performing assets of liquidated banks, put confiscated real estate into economic circulation and use it for state needs.
A one-time law against a pandemic
Parliament is set to approve a law designed to mitigate the fallout from the COVID-19 pandemic. The implementation of the law is to be reported on on a monthly basis.
Creating legal environment to protect borrowers' rights and eliminating money laundering
Mongolia will streamline efforts to protect borrowers rights and take appropriate steps to prevent risks of financial crimes such as money laundering.
Making an electronic transition
Mongolia will take measures for expanding and intensifying the range of e-commerce and e-service of the state, create an integrated e-lesson portal, and develop an application that contains information of the COVID-19 pandemic.
