Mongolia Business and Mongolian Daily Business News

The Parliament started to discuss a draft resolution on guidelines for privatization of state-owned properties in 2010-2012. The novity of the guidelines is a proposal by the Government to trade state-owned shares of shareholding companies through the stock exchange besides traditional ways of privatizations in the coming three years. Also the guideline enables issuance of IPO at the domestic and international markets by companies that need investments through consessional way. Majority of Parliamentarians, who commented with respect to the draft reolution, criticised the erroneous privatization 20 years ago and asked the draft initiators if there is a guaranty that it would not repeat the same mistake. The issue of trading state-owned shares of strategically important mineral deposits through the stock exchange drew attention of the Parliamentarians.

MP N.Ganbyamba: Privatizaion of 1990’s had no effect. No single plant has been built in the last 20 years. The guideline says shareholding companies with stateowned properties are to be formed and their shares will be traded. Aren’t any shareholding companies established today? Read the rest of this entry »

Previously, Mongolia Ipotek Corp. (MIC) issued ₮10 billion with interest rate of 14% and maturity of 5 years. “Its interest rate is closely related from the Central Bank rate and due to the decrease of central bank rate, its interest rate can be decreased down to 12,2-13%” says Mr. Koppa, Chairman of Board and President of Trade And Development Bank of Mongolia. MIC plans to issue another ₮15 billion before the new year.

photo courtesy of gogo.mn

Government of Mongolia issued bond of ₮180 billion and resolved to spend it for funding of the state servants housing. But the resolution stated that it will give loan based on the calculation of 650 thousand MNT per sq.meter creates big dispute. Because, construction companies think that the “given” price is too tough. Hereby, Minister Kh.Battulga shares his opinion.

Q: Government issued resolution, but how is progress of funding state workers’ housing?

A: Parliamentary party groups discussed the issue and supported it. The main comment and finding was to include not only state servants but to include others.

Q: When Government set price at ₮650 thousand per sq.meter, the number of constructions and apartment is decreased, what would you say about it?

A: People have little understanding on the pricing. When we approve the regulation, it will be much clear. ₮650 thousand is one type of credit line. In other words, if he or she spends ₮850-900 thousand per sq.meter, 650 thousand of it will be borrowed by the government. Beneficiary will pay the rest of the payment, using his or her own resource.

Many problems are yet to come to the companies that run their businesses in the construction sector. Non-Governmental Organizations, Private companies and representatives of Trade Unions organized meeting under the title of ‘Construction and Unemployment’ yesterday. They have held talks with the Organizations for constructions, construction materials and presented a letter to the Ministry of road transportation, construction and urban development. The letter requests for help from the Government as the money flow in the construction sector is very limited. Read the rest of this entry »

China is the biggest partner and supplier in construction business of Mongolia. The Mongolian construction sector is already in crisis, but in China it is flourishing. Therefore, two sides will meet in seeking way out of the crisis. The partnership forum is jointly organized by Ministry of Roads, Transport and Construction, Construction Council of Chamber of Commerce and Industry, construction portal www.barilga.mn of Mongolia and Governor’s Office of Erlian, Erlian branch of the Council of supporting trade and www.mychina.biz portal. Read the rest of this entry »

Barilga Sale – 2009 exhibition start today at the “Tekh” construction materials merchandise center. Ministry of road, construction and urban development is also involved in organising this exhibition. The main subject of this exhibition is to find a way out of construction sector crisis, as the organisers have explained briefly. Organisers also say that this exhibition will cut negative trend, build positive environment and support each others to overcome this crisis.

During this fair, information and advices will be provided, lectures and seminars will be held and knowledge and ability of the constructors will be tested through a contest. 284 constructions works and 540 billion MNT of investments are at halt. Read the rest of this entry »

National statistics committee have researched into 6 districts of the capital about the price of real estates and houses. In the 4th quarter of the year 2008, the prices were increased by 18.3% in comparison to the 4th quarter of the year 2007 but prices were decreased by 5.7% (1st quarter), 16.2% (2nd quarter) and 16.4% (3rd quarter) in the year 2008 respectively. Read the rest of this entry »

We are experiencing a slowdown in the economic financial sector as well others sectors especially in the housing sector. Sales of houses and real estate have slumped by 90% and prices fell 20-30% on average, a report shows. Government is implementing a housing project which will provide accommodation for 40’000 but constructions workers are worried because of the sharp fall in demand of houses in the housing market. A seminar aimed at construction workers was held. Government and Bank of Mongolia had provided speech about the policies and measures they will take during this difficult time. Read the rest of this entry »

Real estate agents are predicting price increases in houses and real estates. State Great Khural approved that 455.1 billion ($362 million) will be deposited at commercial banks; they are also in talks of injecting commercial banks to stabilize the banking system in Mongolia. This is directly related to the demand for houses and real estate’s as these money will flow around and will be distributed to the public as form of a loan. Read the rest of this entry »

Mongol Shuudan Bank and Zoos Bank totally shut their all types of loan. But Capital, Savings, Khaan, Xac and Capitron Banks are providing business, salary, pension, secured by savings deposit and leasing loans. These banks are not providing housing loan. Xac Bank temporarily stopped its housing loan until the next year. It is still unclear for other banks when to start giving loan. People who bought Trade and Development Bank accredited construction companies can get housing loan. Mongol Bank reduced its interest rate and it gives good standing position for the commercial banks. Read the rest of this entry »