Mongolia to intensify implementation of housing mortgage loan program-Xinhua

Mongolia to intensify implementation of housing mortgage loan program

Source: Xinhua

Editor: huaxia

2024-05-01 17:59:16

ULAN BATOR, May 1 (Xinhua) -- The Mongolian government on Wednesday decided to intensify the implementation of its housing mortgage loan program by increasing funds for the program.

"Dividends from 34 percent of strategic deposits will be allocated to the Accumulation Fund, which is a part of the national sovereign wealth fund, as required by the law. As a result, an additional funding of 500 billion Mongolian Tugriks (148 million U.S. dollars) will be allocated from the Accumulation Fund for housing mortgage loans," Minister of Finance Bold Javkhlan told a press conference.

Previously, Mongolia allocated a maximum of 700 billion Tugriks (207 million dollars) per year for housing mortgage loans, said Javkhlan, adding that thanks to the additional funding, more families have the opportunity to apply for housing loans.

Housing is one of the most pressing issues in Mongolia, especially in Ulan Bator, which is home to over half of the country's 3.5 million population. More than half of the capital's population live in the city's ger districts, with no running water, central heating or sewerage systems.

The Mongolian government started implementing a mortgage loan program in 2013 to increase the affordability and accessibility of apartments for urban residents, particularly young families and those living in ger districts.

Since then, a total of 123,000 borrowers have benefited from the housing program, according to the government's official data.