Khaan Bank representatives who called on Prime Minister S.Bayar yesterday to discuss problems posed by some herders’ failure to repay loans were advised to be patient and considerate as herders were facing special economic hardship now.

D.Batsaikhan, Deputy Executive Director of Khaan Bank, denied that the bank was seizing animals from defaulters.
Some herders have complained to the media that Khaan Bank was taking one sheep for failure to repay MNT 8, 000.
The bank says 57,200 or 16.7 percent of its total creditors are herders. Even with the low price of wool, cashmere, and leather last year creating financial problems for most herders, only 2.3 percent of the bank’s borrowers have not been able to repay loans in time. The amount of outstanding loans in the name of 781 herders stood at MNT 2 billion on December 31, 2008. “We understood the situation and took several measures to ease the loan repayment schedule for herders in distress,” said Batsaikhan. In many cases, the loan period was extended and no extra interest was charged, benefiting some 1,600 herders.  
The Mongol Post Bank is also in the same situation. Around 30,000 herders owing it altogether MNT 40 billion have failed to repay in time.

 

Source: en.news.mn

Jan 7, 2009