Erdenes Mongol's bond to settle pension loan debt
1 сар, 1 долоо хоног өмнө
- The company is planning to sign agreements of MNT 695 billion with commercial banks shortly
- Bank of Mongolia informed that an outstanding pension loan balance amounted to MNT 776 billion, as of November 2019.
Erdenes” bonds have been issued under the guarantee of the Development Bank of Mongolia in connection with the pension loan payments, said CEO of Erdenes Mongol LLC, Gankhuu Purevjav. Within the framework, the company is planning to settle agreements of MNT 695 billion with commercial banks shortly. Erdenes Mongol’s bond has a 6 percent yield which will mature in six years. Following the President of Mongolia Battulga Khaltmaa’s announcement in his New Year’s address, the Parliament, on January 10, approved the law on one-time cancellation of pension-backed loan debts. The law approved elders who took a loan to continually receive their pensions from the beginning of this year. According to the law, the Government of Mongolia (GoM) decided to repay the pension loan debts up to MNT six million at once. “The relevant research on interest rates differences and losses has been made. Sides have concluded their decision,” said Governor of the Bank of Mongolia Lkhagvasuren Byadran. Khan Bank and State Bank of Mongolia have represented other commercial banks in the several meetings on one-time cancellation of pension loan. Khan Bank sought to resolve issues without harming the interests of its 2.4 million depositors and pledged to settle the pension loans as required by law by February.