The Bank of Mongolia funds mortgage loans with MNT16 billion per month

2019-01-25 14:55:11

Ulaanbaatar/MONTSAME/ Within the eight-percent mortgage loan program, last year the Bank of Mongolia transferred approximately MNT118 billion out of MNT310 billion which was budgeted for funding the program, said A.Enkhjin, Director of the Reserve Management and Financial Markets Department, the Bank of Mongolia.

He said, “Through the mortgage loan, the loans worth about MNT100 billion were given to 1152 borrowers in December, 2018. Last year, 4676 flats were sold through the mortgage loans. Now a preparation is underway to revise the loan regulation. On this matter, talks will be held with IMF within the joint program. Every month, the Bank of Mongolia funds mortgage loans with approximately MNT16 billion.”

According to the Bank of Mongolia, the money supply for 2018 showed a growth of about 23 percent, which means that it matches with inflation rate.

About 70 percent of total money supply are individuals’ savings of national currency while 27 percent are the savings of foreign currency. The total savings increased by 18.3 percent, in which individuals’ savings make up 19.6 percent and savings of organizations make up 41.1 percent. Loan remainders of commercial banks reached MNT17.1 trillion, with an increase of 26 percent as compared with the same period of previous year. Organizational loans cover 84 percent of non-performing loans and 85 percent of bad loans.