Government to receive US$ 100 million loan to reduce the non-performing loans

B.Chimeg GoGo.mn

2017-04-20 12:16 GMT+8

The volume of non-performing loans is increasing. Thus, Government of Mongolia decided to implement a program to restore the banking sector and strengthen financial stability which aims to revise the structure of the banking sector and cover necessary funds. 

In scope of the program, 12 measures to be taken including establishing active management company to manage non-performing loans, introducing system to address banks' debt burden, changing affiliated laws and regulations in order to ensure financial stability, improving banking supervision and strengthening governance. 

In regards, Asian Development Bank agreed to grant US$ 100 million repayment period of 15 years. 

The percentage of non-performing loans in total loans reached the highest level at the end of last year. 

The non-performing loans at the level of the bank system reached 1 035.5 billion togrogs in 1Q`17, down by 34.6 billion togrogs or 3.2% from the previous month, up by 67.6 billion togrogs or 7.0% from the same period of 2016.

 

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