During its monthly press conference held last week, The Bank of Mongolia officials noticed that it has suspended its financing for mortgage loan since January 1, 2020.
The decision was made following an agreement with the International Monetary Fund, which carrying out an Extended Fund Facility arrangement with Mongolia.
The general guidelines on monetary policy for 2020 outline that a national program on mortgage loan will be approved by the Bank of Mongolia, Government, and Financial Regulatory Commission with a view to ensure stable implementation of the mortgage loan program and central bank officials said the sides will keep working to reduce the cost of the mortgage loan and improve its accessibility.
In December 2019, 1365 new borrowers received mortgage loans worth MNT 112 billion. Of them, 56.3 percent was sourced from the mortgage loan program and 43.7 percent was taken from the commercial banks’ own funding. The weighted average interest rate of the newly issued mortgage loans reduced by 1.1 percentage.