By Elena Fehrbach
May 5 – The Government of Mongolia has approved 8 percent interest rate for long- term housing loans. The duration of the loan can be up to 20 years for the purchase of both old and new houses and apartments with the total area not more than 80 square meters. The compulsory condition is the provision of deposit in the amount of 10 to 30 percent of the purchase amount.
The Minister of Economic Development and the Minister of Construction and Urban Development has received responsibility for implementing and monitoring the terms of the loans issued by the local commercial banks.
The new loan conditions are implemented to encourage and improve the housing situation in Mongolia and Ulaanbaatar in particular, where 40 percent of the population is still living in ger districts without connection to the central heating and water supply. The Government has also discussed other possible solutions for the housing issues in Ulaanbaatar, among which, the Rented Housing Program, providing 1,300 apartments to households which are not able to afford purchasing own apartment.