1 trillion MNT is at halt

Aug 10 • Business, Real Estate • 1115 Views • 2 Comments on 1 trillion MNT is at halt

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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.

Statistics reveals that 440 constructions works have stopped. Over 7800 household shows frustrations as they have paid and ordered houses and flats from these constructions. Mongolia’s money circulation is 2.4 trillion MNT but 998 billion MNT is locked in the construction sector due to economic recession. This means that nearly third of the money in circulation is at halt. This also have negative effect on other sectors such as financial and banking.

Unemployment in the construction sector is still on a rise and many complain that Government and Bank of Mongolia did not respond to the slowdown fast enough. The request letter asks for long term soft loans as the recession already affected the material producers and sellers, workers of related industries, savings account holders and also the new home buyers. Director B.Byambajav of the Ministry of road transportation, construction and urban development will look in to the request. Many are waiting for a positive response according to the source.

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2 Responses to 1 trillion MNT is at halt

  1. Barry says:

    In Feb it was announced that construction business was off by 90%.
    what is the situation with the construction industry now, 6 months later? No construction, no jobs, no jobs no income, no income no spending. This downward spiral needs to be broken, by building infrastructure. Government has little money to spend on infrastructure. “B”

  2. Admin says:

    In my opinion small private constructors and builders are less likely to be affected by this crisis. The large enterprises are likely to be affected because they have thousands of employees. It is such a shame that Government is doing nothing about this. They don’t really have a choice anyway as the combanks dont have money to loan out…

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