As previously reported by BM, the Central Bank of Mongolia has started implementing programs in conjunction with government to stabilize prices of key commodities such as petroleum goods, meat, vegetables, flour, and construction materials. Selected businesses in petroleum, meat and flour production sectors have received loans with favorable terms to date.
A total of 11 importers and retailers of fuel and diesel products were provided with MNT 93.7 Billion loan with annual interest of 3.8% repayable within one year. Government authorities hope that these measures will allow these businesses to finance their imports at minimal cost, and reduce expenses that otherwise might have occurred as a result of high interest rate on borrowing.
Recently, Ts.Bayarsaikhan, Minister for Construction and Urban Planning, and N.Zoljargal, President, Central Bank of Mongolia, have signed a memorandum to launch a program to support construction sector, and stabilize the supply of quality housing and of its prices. Minister Bayarsaihkan stated that the program would spend MNT 370 Billion to increase the supply of housing and stabilize prices offered to the public. The program will provide soft loans to construction companies on an open and transparent manner so that they can procure building materials at minimal cost.
He said that having the working capital ready before the construction season would be critical for the companies operating in the sector. Additionally, the initiative will focus on introducing eco-friendly technologies in the construction industry, and launching mortgage programs in order to provide housing to wider public.
More details about the “Price Stabilization Program” can be obtained at http://www.mongolbank.mn/pricestability.aspx.