Outstanding debt reaches MNT 1.3 trillion in April
1 долоо хоног, 4 өдөр өмнө
A total of remaining outstanding debt to entities and citizens reached MNT 17.2 trillion as of late April, plummeting by MNT 514.5 billion compared to the same period of the previous year. Depreciation equals 2.9 percent in accordance with the National Statistics Office (NSO)’s statement. During its meeting on April 13, 2020, Monetary Policy Committee (MPC) had decided banks and borrowers to be able to extend the term of consumer loans that encounter difficulties with repayment up to 12 months at once; changing the outstanding loan condition is impossible due to income ratio of 60 percent as well as 30 months cap. The commission also said, “There is no shift in the amount of income and this exemption does not apply to borrowers who are able to repay the loan on schedule.”As of April following the decision, the remaining outstanding loan turned MNT 1.3 trillion, increasing MNT 328 billion or 33.5 percent from a year ago and overdue loan accounts for 7.6 percent and non-performing loan comprises 10.9 percent of the total loan debt. Loan growth is expected to continue to decline in the first half of 2020 and to increase gradually in the second half, according to the Bank of Mongolia.