Outstanding loans to individuals drop by 3.7%
1 сар, 4 долоо хоног өмнө
As of February, outstanding loans at commercial banks increased by 0.5 percent to MNT 17.2 trillion year-on-year. Of these, loans to citizens decreased by 3.7 percent while entities loan rose by 5.5 percent. On a monthly basis, loan drops by 4.1 percent in February from the previous month. In terms of loan interests, the weighted average interest rate on new tugrik loans is 17.3 percent for loans to individuals and 16.9 percent for loans to the private sector. According to the reporting period, non-performing loans account for 10.7 percent of total outstanding loans and over-due loans make up six percent. Bank of Mongolia (BoM) emphasized that quarantine regimes and state of emergency is adversely affected some entities’ operations. In this regard, around 26,000 borrowers with total debts of MNT 2.5 trillion have been struggling to make loan payments. Of these, 65.1 percent or MNT 2 trillion belongs to business entities and 35 percent or MNT 545 billion to individuals. In the meantime, commercial banks have begun to amend their loan agreements in accordance with a portfolio decision issued by the Bank of Mongolia.