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Mongolia

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 24 June, 2020

General Information

The authorities declared the state of high alert on February 13 and quickly implemented a broad range of measures including a travel ban from high-risk countries, temporary suspension of coal exports to China, social distancing, public events cancellations and school and university closures.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Monetary and macro-financial

On March 11, the Bank of Mongolia (BOM)

  • reduced the policy rate by 100 bps to 10 percent;
  • reduced the MNT reserve requirement of banks by 200 basis points to 8.5 percent; and 
  • narrowed the policy rate corridor to ±1 percent. The lower reserve requirement released MNT 324 billion (0.8 percent of GDP) of additional liquidity in the banking system. 

On March 18, the BOM and the Financial Regulatory Commission implemented temporary financial forbearance measures on prudential requirements, loan classifications, and restructuring standards.

On April 13, the BOM:

  • cut the policy rate by 100 bps to 9 percent and 
  • allowed existing consumption loan borrowers to defer their principal and interest payments by up to 12 months.

Exchange rate and balance of payments
In line with the closure of border to China, most mineral exports to China, accounting for about 90 percent of total exports, have been suspended since February 10, though coal exports started to gradually resume on March 15.

Other measures and sources

Main sources of information