619 billion MNT loaned to individuals and businesses under stimulus program

Banks had approved employment support loans worth 619 billion MNT to 1,368 enterprises and 7,662 individuals by the end of April as part of the government’s stimulus program for health protection and economic recovery, according to latest reports.

In total, banks reportedly received 48,443 loan applications for financing of 5.5 trillion MNT. However, the government has capped financing for the employment support loan at 2 trillion MNT.

Some sources claimed that commercial banks had stopped issuing the employment support loan with 3 percent interest rate. When asked for clarification, some banks said that financing had cut off while others were not immediately available for comment.

Regarding this issue, Mongol Bank informed that the number of loan applications decreased compared to previous weeks due to the extended lockdown, before assuring that commercial banks have been working continuously and reviewing applications that were submitted prior to the lockdown. Banks are preparing to issue loans to individuals and enterprises once the lockdown is lifted, according to the central bank.

“The information that the employment support loan has been suspended due to lack of funding by some media outlets is not true. This soft loan is financed by commercial banks with their own capital and as long as the amount of funding to be provided by a bank hasn’t run out, the loan will be disbursed until December 31, 2021,” Mongol Bank stressed in a statement.