Since last January, 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. 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. The Ministries, the Authority for Fair Competition and Consumer Protection (AFCCP) and domestic providers of building material signed the agreement last January. Within this framework, yesterday on March 28, 2013 the trilateral agreement between the Ministry of Construction and Urban Planning, the Authority for Fair Competition and Consumer Protection (AFCCP) and over 50 construction structural steel, cement producers signed the agreement to get a soft loan.
The program will provide soft loans to the companies to procure building materials at minimal cost and keep the apartment`s market price under 1.5 million per sq.metre. 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.