The Bank of Mongolia has postponed loans to 6,596 borrowers
The Bank of Mongolia has postponed loans to 6,596 borrowers
The Bank of Mongolia provided information on current issues today / April 30, 2020 /. The bank publishes a quarterly loan status survey. According to the survey, over the past two months, commercial banks have tightened lending criteria for individuals. However, the loan terms have not changed. Due to the coronavirus infection, the demand for loans has decreased. Commercial banks will not change their loan terms if they tighten their lending criteria next month.
6,596 borrowers have been deferred in consumer lending. The amount of overdue loans is about 76 billion. Individuals deferred their loans for an average of 6.2 months. The debt-to-income ratio has declined. By type of loan, salary loans account for 90.4 percent.
The volume of non-performing loans in the banking sector decreased by MNT 9 billion from the previous month, and the share of non-performing loans in total loans was 10.7 percent. Overdue loans increased by MNT 120 billion in March from the previous month, accounting for 6.7 percent of total loans. This increase is due to the increase in overdue loans in the manufacturing, construction and mining sectors.
According to March statistics, overdue mortgage loans have returned to normal. Mortgage lending will be increased to provide special services to government employees from apartments in the Buyant-Ukhaa district on special terms. As a result, government officials are working with the Ulaanbaatar Housing Corporation and the Ministry of Finance to offer rent and ownership.
Until the end of this year, the Bank of Mongolia will provide 16-20 billion MNT in financing to commercial banks every month as part of its support for the mortgage loan program. Mortgage deferrals will continue, and individuals will be able to submit their applications electronically to commercial banks. No specific information has been received from commercial banks regarding borrowers' requests.
PRIVATE ENTERPRISES ESTABLISH 81 PERCENT OF OBLIGATED LOANS
As of March, loans issued by commercial banks to individuals amounted to MNT 8.8 trillion. This is a decrease of 6.5 percent compared to the same period of the previous year. In addition, 81 percent of all overdue loans are private. In particular, the construction sector accounted for the largest share. Loan interest rate decreased by 0.5 percentage points compared to the same period of the previous year.
Last month, commercial banks issued 46.4 billion new loans to 613 individuals. Of this, 57 percent was financed by banks from their own sources and 43 percent by the mortgage loan program. The average mortgage interest rate was 11.5 percent, down by 1.5 percent compared to the same period of the previous year. As of March, the total outstanding mortgage loan was 4.6 trillion MNT. 95.8 percent of total mortgage loans are normal loans, 2.2 percent are overdue loans and 2 percent are non-performing loans. In terms of loans, the average interest rate on new loans is MNT 16.6 percent and on foreign currency is 10.5 percent. Loan interest rate decreased by 0.5 percentage points compared to the same period of the previous year. The share of non-performing loans has been stable at 10.7 percent for the last two months.
BALANCE OF PAYMENTS LOSES $ 750 MILLION
In the first three months of this year, it had a deficit of $ 750 million. Compared to the same period last year, an increase of about $ 370 million. Due to declining export earnings. The financial account showed a surplus of $ 412 million. The total balance of payments showed a deficit of $ 350 million and foreign exchange reserves stood at $ 1.4 billion.
FOREIGN DEBT INCREASES BY TWO BILLION DOLLARS
Mongolia's external debt in 2019 will amount to $ 30.4 billion. External debt increased by $ 2 billion compared to the end of 2018. The increase in external debt was mainly due to an increase of USD 1.1 billion in foreign investment loans and USD 622 million in external government loans. A total of $ 4.1 billion in foreign debt is expected to be repaid this year. However, some loans will be extended. The Bank of Mongolia is negotiating with the People's Bank of China to extend the repayment period of $ 1.8 billion in foreign debt.
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The Bank of Mongolia provided information on current issues today / April 30, 2020 /. The bank publishes a quarterly loan status survey. According to the survey, over the past two months, commercial banks have tightened lending criteria for individuals. However, the loan terms have not changed. Due to the coronavirus infection, the demand for loans has decreased. Commercial banks will not change their loan terms if they tighten their lending criteria next month.
6,596 borrowers have been deferred in consumer lending. The amount of overdue loans is about 76 billion. Individuals deferred their loans for an average of 6.2 months. The debt-to-income ratio has declined. By type of loan, salary loans account for 90.4 percent.
The volume of non-performing loans in the banking sector decreased by MNT 9 billion from the previous month, and the share of non-performing loans in total loans was 10.7 percent. Overdue loans increased by MNT 120 billion in March from the previous month, accounting for 6.7 percent of total loans. This increase is due to the increase in overdue loans in the manufacturing, construction and mining sectors.
According to March statistics, overdue mortgage loans have returned to normal. Mortgage lending will be increased to provide special services to government employees from apartments in the Buyant-Ukhaa district on special terms. As a result, government officials are working with the Ulaanbaatar Housing Corporation and the Ministry of Finance to offer rent and ownership.
Until the end of this year, the Bank of Mongolia will provide 16-20 billion MNT in financing to commercial banks every month as part of its support for the mortgage loan program. Mortgage deferrals will continue, and individuals will be able to submit their applications electronically to commercial banks. No specific information has been received from commercial banks regarding borrowers' requests.
PRIVATE ENTERPRISES ESTABLISH 81 PERCENT OF OBLIGATED LOANS
As of March, loans issued by commercial banks to individuals amounted to MNT 8.8 trillion. This is a decrease of 6.5 percent compared to the same period of the previous year. In addition, 81 percent of all overdue loans are private. In particular, the construction sector accounted for the largest share. Loan interest rate decreased by 0.5 percentage points compared to the same period of the previous year.
Last month, commercial banks issued 46.4 billion new loans to 613 individuals. Of this, 57 percent was financed by banks from their own sources and 43 percent by the mortgage loan program. The average mortgage interest rate was 11.5 percent, down by 1.5 percent compared to the same period of the previous year. As of March, the total outstanding mortgage loan was 4.6 trillion MNT. 95.8 percent of total mortgage loans are normal loans, 2.2 percent are overdue loans and 2 percent are non-performing loans. In terms of loans, the average interest rate on new loans is MNT 16.6 percent and on foreign currency is 10.5 percent. Loan interest rate decreased by 0.5 percentage points compared to the same period of the previous year. The share of non-performing loans has been stable at 10.7 percent for the last two months.
BALANCE OF PAYMENTS LOSES $ 750 MILLION
In the first three months of this year, it had a deficit of $ 750 million. Compared to the same period last year, an increase of about $ 370 million. Due to declining export earnings. The financial account showed a surplus of $ 412 million. The total balance of payments showed a deficit of $ 350 million and foreign exchange reserves stood at $ 1.4 billion.
FOREIGN DEBT INCREASES BY TWO BILLION DOLLARS
Mongolia's external debt in 2019 will amount to $ 30.4 billion. External debt increased by $ 2 billion compared to the end of 2018. The increase in external debt was mainly due to an increase of USD 1.1 billion in foreign investment loans and USD 622 million in external government loans. A total of $ 4.1 billion in foreign debt is expected to be repaid this year. However, some loans will be extended. The Bank of Mongolia is negotiating with the People's Bank of China to extend the repayment period of $ 1.8 billion in foreign debt.
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