PENSION LOAN RATES TO BE CUT

Ulaanbaatar /MONTSAME/ Minister of Labor and Social Protection S.Chinzorigt was instructed by the Cabinet to cooperate with Central and commercial banks in systematically lowering interest rates of pension loans. Additionally, Governor of the Central Bank N.Bayartsaikhan was advised to set a fixed loan term that would be consistent across all banks, as well as to cancel minimum reserve requirement on Social Insurance Fund resource placed in banks for issuance of pension backed loans. Ministry of Labor and Social Protection is now working with State Bank and Khan Bank so that Social Insurance Fund’s spare balance is placed in commercial banks under special conditions - in order to launch one-year pension loans with monthly interest rate of 1 percent starting this month. Last year, 381 thousand people received their pensions from Social Insurance Fund through 10 banks - 230 thousand of which have taken 18 percent loans with a term period of up to 36 months. O.Onon