A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/767/

Policy-makers seek to lower mortgage rate

​41-60 square meter housings to have the highest demand in the next three years​

 0 сэтгэгдэл

A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/767/


Mongolian Mortgage Corporation HFC LLC, in cooperation with the Ministry of Construction and Urban Development, Ministry of Finance and Financial Regulatory Commission, organized the fifth Asian Fixed Income Summit (AFIS) in Ulaanbaatar yesterday. Total outstanding loans of mortgage loan program has reached MNT 4.2 trillion, involving over 93 thousand people. The Bank of Mongolia (BoM) informed that around 700 loaners received mortgage in May 2018, of which the Government financed 436 units with MNT 30.15 billion and BoM-248 units with MNT 16.3 billion. In total, the BoM plans to finance MNT 192 billion and the Government-MNT 120 billion for the program this year. According to Tenkhleg Zuuch LLC, the housing demand is expected to be 35-40 thousand household in the next three years despite the fact that mortgage program financing has been lowered. Also, 41-60 square meter accommodations are expected to have the highest demand for the next three years. At the forum, the Ministry of Finance disclosed that they have drafted a revision to the financing of mortgage loan program, which is expected to be presented to the Cabinet by September 30. The Government, instead of cooperating with the BoM, will be fully responsible for the program’s financing with the bill. In addition, the regulations of mortgage is also being revised, informed Minister of Construction and Urban Development Badelkhan Khavdislam. He remarked, “We have drafted a mortgage regulation and heard the suggestions of related ministries. It will be presented to the Cabinet in August. Key changes in the draft will mainly involve first-time accommodation buyers, reducing prepayment of mortgage to 25 percent.

Housing loans to expand as mortgage to GDP ratio results lower than average

We also conducted studies on lowering the interest rate to seven percent; however, the study suggested that it is not possible. Actions are being taken to reduce housing price gradually, seeking opportunities to domestically supplying cements and armatures. We will also support private sector initiatives on raising funds for mortgage financing.” Panelists at the AFIS highlighted that Mongolia’s outstanding mortgage to GDP ratio stands at 15.7 percent as of 2017, while the world average was 18.2 percent in 2016. Experts view that this demonstrates that the issuance of housing loans can be expanded further. Mongolian Mortgage Corporation HFC LLC is currently financing the eight percent mortgage program by issuing mortgage-backed securities, granting loans to 64,772 people as of the first quarter of this year. Gantulga Badamkhatan, CEO of the company, remarked, “We are aiming to create loan sources for the program by raising a bond from international banks and financial institutions. We are also studying opportunities to establish a green fund to reduce the prepayment of mortgage loans and support green construction.” As a suggestion, Andrei Milyutin, Senior Financial Sector Specialist at the World Bank Group, advised “Long-term interest rate insurance environment needs to improve. The key elements of estimating accessible housing must include household income, housing prices and sustainability of median household income. It is important to divide loaners into social stratification and hold policies for targeted income level; for instance, increasing loan issuance to low and middle income households.”

A

Жижиг

A

Дунд

A

Том

MCE raises commission on raw wool to enhance quality

​Manufacturers criticize quality does not come at premium price​

 0 сэтгэгдэл


Mongolian Commodity Exchange (MCE) raises commission on wool in order to support wool processors and knitters. The decision was announced yesterday during a press conference, in which the MCE said they respect the request submitted by wool processors, such as Erdenet Carpet LLC, Ulaanbaatar Carpet JSC, Mogol Noos LLC and Sor Cashmere LLC. Accordingly, commission on wool is now MNT 9.3 per kg. The above-mentioned companies reportedly submitted their request for support to the Ministry of Food, Agriculture and Light Industry in June 2018. After reviewing the request, the ministry has decided to increase commission on washed wool from 0.32 percent to 15 percent and reduce premium on sheared wool to 0.2 percent. National manufacturers highlighted, “The decision is encouraging wool shearing, manufacturing of final products, and thus, helping export production.” Presently, wool price fluctuates between MNT 3,200 and 4,000 per kg.

MCE officials remarked that the increase in premium on wool is not an attempt to interfere with the market price of wool and is aimed at preventing price bubble and maintaining sustainability. According to the MCE, the ideal price for wool is MNT 3,000 per kg. By all accounts, this will reduce manufacturing cost of final products and ease price pressure for consumers. Manufacturers criticized that quality does not come at a premium price. Therefore, they highlighted that herders need to encourage national production by improving the quality of raw materials and get awarded MNT 1,000 per kg. According to statistics, Mongolia domestically supplies 40 percent of local demand and 70 percent of camel hair fabric. Last year, national producers processed 67 percent of the wool and 90 percent of the camel hair sales for export production. According to the related ministry, Mongolia has a potential to annually processes over 35,000 tons of wool. National companies currently process about 27,000 tons of wool annually. Additionally, wool processing representatives highlighted that Mongolia is currently processing fine wool, producing cloths and market-ready products with it.

A

Жижиг

A

Дунд

A

Том

Budget surplus increases by 29 percent

 0 сэтгэгдэл


In the first half of 2018, total equilibrated revenue and grants of the General Government Budget reached MNT 4.1 trillion and total expenditure and net lending amounted to MNT 4.1 trillion. In the first half of 2017, the equilibrated balance had a deficit of MNT 676.5 billion, however, it reached the surplus of MNT 12.9 billion. Tax revenue reached MNT 3.7 trillion, increased by MNT 842.6 billion or 29.9% compared with the same period of the previous year. This growth was mainly affected by an increase of MNT 240.3 billion or 33.7% in value added tax, MNT 219.6 billion or 31.2% in income tax, MNT 132.8 billion or 63.7% in excise taxes, MNT 92.7 billion or 15.1% in social security income, MNT 89.9 billion or 41.9% in revenue of foreign activities and MNT 53.4 billion or 18.3% in other taxes. However, the revenue of special purposes decreased by MNT 0.4 billion or 6.9% compared with the same period of the previous year. The General Government revenue accounted for 80.4% of tax revenue, 10.5% of non-tax revenue, 6.8% of the future heritage fund and 2.3% of stabilization fund. In the first half of 2018, total expenditure and net lending of the General Government Budget amounted to MNT 4.1 trillion, increased by MNT 172.2 billion or 4.4% compared with the same period of the previous year. This growth was affected by an increase of MNT 196.7 billion or 5.9% in current expenditure, MNT 95.9 billion or 2.1 times in net lending, a decrease of MNT 120.4 billion or 23.4% in capital expenditure however, there was compared with the same period of the previous year.

A

Жижиг

A

Дунд

A

Том

Heavy rains expected throughout July

​Heavy rain and flood warning remains in place​

 0 сэтгэгдэл


National Agency of Meteorology and Environment of Monitoring (NAMEM) has issued severe weather warning. According to specialist of NAMEM Sarantuya Chuluunbat, heavy rains and flood will continue to lash large parts of Mongolia till the end of July. Sarantuya Chuluunbat noted “Several rounds of heavy rain are expected throughout much of the country in July. In particular, heavy rain led to flooding around Tuv, Bayan-Ulgii, Gobi-Altai, Arkhangai, Selenge, Khuvsgul aimags and levels of most rivers and lakes have increased significantly. Heavy rain and flood warning remains in place”. This year, a total of 48 people have lost their life in water related accidents in 27 soums of 12 aimags and 10 of them are children. For instance, June 1, a ten year old boy died after drowning in the Tuul river. Nine days later of this accident, two kids drowned in water. On June 20, three children died in the local river of Tuv aimag.

48 people have died in water related accidents, including 10 children

A three year old boy and a four year old girl died after drowning in the river of Kharganat in Tsengel soum of Bayan-Ulgii aimag. Another four year old boy drowned in Shar khutul river in Altai soum of Khovd aimag. A ten year old girl died in river Tuul near the Zaisan area on June 26. Two days later of this incident, eight year old boy drowned in river Tuul in the Khan-Uul district area. On July 8, emergency officers rescued a 15 year old boy who nearly drowned in the Tuul river. On July 10, emergency officers rescued a six year old boy who fell in water drainage channel in Bayanzurkh district. Due to heavy rain, rivers Kharkhiraa, Onon, Kherlen and Balj overflowed river banks causing flood in local areas. Because of heavy rain and flood, roads and bridges in Selenge and Darkhan-Uul aimags were severely damaged. The local authorities and traffic police are warning citizens not to travel to above mentioned aimags or cross rivers for any reason.


A

Жижиг

A

Дунд

A

Том

Governor’s Office takes safety measures for citizens

Gantumur Togmid led campaign to repair exposed power cables and playground equipment​​

 0 сэтгэгдэл

Within last two months, three children died in separate tragic accidents. On June 18, an eleven year old boy was hit by a falling football gate in 79th elementary school. Seven days later, a nine year old boy died from electric shock in Bayanzurkh district. He died after touching a steel door which was connected to electric wire. On July 5, a seven year old girl was killed from electric shock of a fallen utility pole while playing in Nalaikh district. Following the series of accidents, Governor’s Office of the Capital city directed the district authorities and relevant organizations to take safety measures. According to this direction, General Manager of Ulaanbaatar Gantumur Togmid led a campaign to repair exposed power cables, utility poles and playground equipment for children.

Within the framework of this campaign, over 20 thousand street lights were fixed

Within the framework of this campaign, over 20 thousand street lights and 10 thousand utility poles were repaired, more than 30 thousand exposed power cables and uninsulated electrical wirings were fixed in all districts by July 10. During the Naadam festival, capital city police departments worked under high-level of preparedness, in particular in the area of the central stadium, Sukhbaatar’s square and Khui Doloon Khudag. Police officers issued over 10 thousand cautions and warnings for Mongolians as well as foreign visitors. During the festival, they also returned 62 missing children to their parents. Police officers provided over 3500 wristbands to the children with phone numbers of their parents and thanks to this measure the number of lost children reduced by 27 percent compared to the same period of last year. During the holiday, the risk of accidents in river and lakes increases. On July 14, a four year old boy died after drowning in the Tuul river. According to information of the witnesses, police officers recovered body of the boy and called his parents to identify. During the incident, his parents were at home. During the holiday, over 10 thousand officers and over 5000 special vehicles of the emergency management units worked for securing health and safety of the citizens. According to the National Emergency Management Agency, its units received over 60 emergency calls and rescued or provided first aid to 15 citizens.