Mongolia Business and Mongolian Daily Business News

On April 01, 2009, the Speaker of Parliament D. Demberel met with Deputy CEO of Khan Bank D. Batsaikhan, President & CEO of Mongol Post Bank D. Oyunjargal and President & Executive Director of Khas Bank M. Bold to discuss the banks’ current policies toward herders and small & medium enterprise owners.

The bank executives talked about how lending strategy towards is supporting herders and small & medium enterprise owners. Deputy CEO of Khan Bank D. Batsaikhan said, “Khan Bank has made herder loans since 2000 and now has 65,000 herder loans outstanding. On December 01, 2008, the bank made a decision was made to offer concessionary terms to our herder borrowers. The decision will stay in effect until July 01, 2009. So far, 6,315 herder loans have been extended and we are continuing to disburse herder loans. 96.7% of the herder loans are current on their repayment whereas 3.3% are past due. We are being as flexible as we can with regard to the loans through means such as waiving interest payment due from herder who cannot pay the interest.  Khan Bank has around 20,000 customers engaged in SME. We are extending their loans and negotiating repayment schedule”.

The Speaker of Parliament D. Demberel commended the banks for their flexible approach towards herders and micro business owners in the form of loan extensions and interest waivers.   He continued “The policy of the Parliament is to prevent our citizens from ending up plagued by a web of bank debt.  We need to try our best to overcome the crisis without any debt burden. To this end, the banks need to focus on efficient use of their resources and available funds. Accountability is also an important consideration. The government decided to guarantee the individual current and deposit accounts in order to improve the banking sector health and shore up public confidence in banks. This will mean we will watch banks as closely as ever to make sure they remain sound. I would like to ask for your further support for our herders and small business owners.”

Governor of BoM L. Purevdorj and Advisor of the Parliament Speaker D. Davaasambuu were also present at the meeting.

Source: KhanBank.com

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