"The Parliament session today discussed an amendment to the Civil Law and additions to the Law on Real Estate Collateral, and approved the drafts with an 86.5 percent vote from parliament members.
MP R.Gonchigdorj introduced that the Standing Committee on Law decided it was right to approve the drafts processed by 27 MPs led by MP D.Ganbat, and the majority of the members participating in the session voted in favor of the standing committee’s decision.
Approval of the draft laws make it possible for loan repayment to continue normally with no risk of borrowers not paying their loan. Furthermore, it frees borrowers from the hassle of having to get permission from the originator in the case of renting, or in other words, transferring possession of the asset to others, helping economic activity to pick up, and making mortgage-backed securities as low risk as they used to be.
It is expected to result in not only a continuation of the government’s mortgage program, but to also be concrete support for SMEs and businesses, and increase loan rotation in the market through the banks’ issuing of collateralized real estate loans.
Speaker of Parliament Z.Enkhbold emphasized that the passage of the law creates a legal environment to keep the issuing of loans in place, and that loan issuance cannot stop again."
G.Tushee
Source: www.mongolianeconomy.mn
"The Parliament session today discussed an amendment to the Civil Law and additions to the Law on Real Estate Collateral, and approved the drafts with an 86.5 percent vote from parliament members.
MP R.Gonchigdorj introduced that the Standing Committee on Law decided it was right to approve the drafts processed by 27 MPs led by MP D.Ganbat, and the majority of the members participating in the session voted in favor of the standing committee’s decision.
Approval of the draft laws make it possible for loan repayment to continue normally with no risk of borrowers not paying their loan. Furthermore, it frees borrowers from the hassle of having to get permission from the originator in the case of renting, or in other words, transferring possession of the asset to others, helping economic activity to pick up, and making mortgage-backed securities as low risk as they used to be.
It is expected to result in not only a continuation of the government’s mortgage program, but to also be concrete support for SMEs and businesses, and increase loan rotation in the market through the banks’ issuing of collateralized real estate loans.
Speaker of Parliament Z.Enkhbold emphasized that the passage of the law creates a legal environment to keep the issuing of loans in place, and that loan issuance cannot stop again."
G.Tushee
Source: www.mongolianeconomy.mn
