Ulaanbaatar
Government to take charge of mortgage loan implementation
PoliticsUlaanbaatar /MONTSAME/ Implementation of the Apartment mortgage program will be shifted to the Government from Bank of Mongolia starting 2018. Within the Extended Fund Facility program, the International Monetary Fund recommended to transfer the program implementation to the Government as the program is related to budget issues.
“Bank of Mongolia will focus on monetary policy. The central bank has used to implement many budgetary projects. The bank has made additional financing of MNT8 trillion, which has not been reflected in the budget at all and it was resolved by the Bank of Mongolia. The central bank will not implement such budgetary projects and programs anymore” said Governor of Bank of Mongolia N.Bayartsaikhan. The World Bank supports to improve the Apartment mortgage program to ensure successful implementation, he added.
A staff team of the International Monetary Fund led by Koshy Mathai visited Ulaanbaatar during February 1-19 and the sides reached staff-level agreement on the Extended Fund Facility program.
“Strengthening the banking system is a crucial part of the program, to ensure that the banks can support sustainable and inclusive economic growth. The authorities’ first priority is to undertake a comprehensive diagnosis of the banking system to assess institutions’ financial soundness and resilience. With the results of this diagnostic in hand, the BOM will engage banks to ensure appropriate restructuring and recapitalization, as necessary. The BOM will complement these actions by strengthening the regulatory and supervisory framework, and government is committed to improving the deposit insurance system. The authorities are also committed to strengthening the regime for Anti-Money Laundering and Combating the Financing of Terrorism” said head of staff IMF staff team Koshy Mathai.
