MNT 283 billion issued for mortgage loans by August 2019Economy
Ulaanbaatar /MONTSAME/. P.Munkhbayar, Director of the Reserve Management Financial Markets Department of the Bank of Mongolia delivered a report about the housing mortgage loan and financing. In the first eight months of this year, a total of MNT 283 billion from three different sources was issued for 4 thousand borrowers for mortgage loan to purchase apartments.
Particularly, the central bank lent up to MNT 16 billion every month with repayments of bonds, the government of Mongolia issued MNT 10 billion monthly from the state budget and commercial banks funded more than MNT 10 billion every month using their own sources. In general, around MNT 36 billion is spent for mortgage loans from month to month and the total financing for mortgage loans in 2019 is expected to around MNT 430 billion.
According to the Central Bank official, the main change of the mortgage loan process is the government decision to use state budget and financial sources of commercial banks for the loan investment, which increased the total financing for the mortgage loans by MNT 145 billion and doubled the number of borrowers. Funding for the mortgage loan is reflected in the state budget of the particular year and will be distributed to commercial banks through the Bank of Mongolia under a contract between the Ministry of Finance, Ministry of Construction and Urban Development and the Bank of Mongolia.