Ulaanbaatar, May 14, 2024 /MONTSAME/. On May 9, 2024, Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai participated in the Opening Ceremony of the Savings Fund account as the Law on Mongolia’s Sovereign Wealth Fund came into force. The Prime Minister stated, "In the past, the Government has worked with all its might to ensure the openness and transparency of the mining industry, which accounts for 93 percent of Mongolia's exports. We are grateful to the people of Mongolia who have been with us in the fight and initiatives for wealth reform. Oyutolgoi’s debt of USD 2.3 billion has been settled, the fraudulent scheme of Erdenes Tavantolgoi was exposed, and the company Erdenes Tavantolgoi has become transparent, and its products are now traded on the stock exchange. The GDP has seen an increase from MNT 37 trillion in 2020 to MNT 68.9 trillion in 2023. For the first time in 2023, the GDP per capita reached USD 5,875 USD. Foreign exchange reserves have reached USD 5.0 billion, and the balance of payments has exceeded USD 1.5 billion for the first time. Economic growth has risen from minus 4.6 percent during the pandemic to 7 percent today. The bonds of the Development Bank have been paid off with our own resources, thus averting potential bankruptcy. Today, we are inaugurating the Savings Fund of Mongolia’s Sovereign Wealth Fund.

The Prime Minister emphasized that the inauguration of the Savings Fund of Mongolia’s Sovereign Wealth Fund marked a significant milestone. This fund, which will receive 34 percent of the dividends of strategic deposits owned by “Erdenes Mongol LLC”, is a new national system aimed at expanding the middle class. He expressed his belief that if every citizen has a home, is healthy, and receives a high level of education, they can change their own and their family’s future, laying the foundation for the country’s prosperity and addressing fundamental issues of social development.

The Prime Minister further stated that the Savings Fund will serve as a new trust agreement and joint liability agreement and pledged the government’s full support and monitoring of the profitable operation of projects based on strategic deposits.

Mongolia’s Sovereign Wealth Fund will comprise three accounts: “Future Heritage Fund,” “Development Fund,” and “Savings Fund.” The “Savings Fund” will be modeled after the Singapore Savings Fund and will be used to support citizens in critical areas such as healthcare, education, and housing. Today, 34 percent of Erdenet Mining Corporation, 34 percent of Oyutolgoi, 34 percent of Tavantolgoi, and “Erdenes Mongol” LLC have transferred a total of MNT 500 billion to the Savings Fund, thereby augmenting the resources of the Housing Program. In collaboration with the Central Bank of Mongolia and commercial banks, the source of mortgage loans has increased to MNT 1.2 trillion, enabling 10,000 families who have been waiting to participate in the housing loan program.

As of May 1, 2024, a total of 20,100 citizens nationwide have applied for mortgage loans, of which 3,520 are in rural areas, and the remaining 16,531 are in Ulaanbaatar. In the first four months of the year, more than MNT 300 billion in mortgage loans have been granted to over 2,600 citizens.