L.Purevdorj: Money from bonds not for apartment building
Mongol Bank President L.Purevdorj answers our reporter’s questions on the Government decision to sell bonds to finance large programs and projects through the Development Bank.
What do you think about the move?
I think yesterday’s decision by the Government to issue bonds worth MNT800 billion is significant for two reasons. First, this is the first time the Government will raise so much money in the capital market, and, second, this will allow money that sits idle in banks to be used to create wealth.
What does it mean for the 100,000 Apartments’ program?
This MNT800 billion will not be used for apartment financing. There will be another bond issue for MNT300 billion to finance apartments construction. The Government is still to finalize details of this second sale.
Will apartment loan interests be reduced to 6%?
Such a move will lead to various problems. It would take a large amount of money and would also damage the market structure. It will be a social welfare program, and so will have to be discussed from various perspectives.
What do you think about the move?
I think yesterday’s decision by the Government to issue bonds worth MNT800 billion is significant for two reasons. First, this is the first time the Government will raise so much money in the capital market, and, second, this will allow money that sits idle in banks to be used to create wealth.
What does it mean for the 100,000 Apartments’ program?
This MNT800 billion will not be used for apartment financing. There will be another bond issue for MNT300 billion to finance apartments construction. The Government is still to finalize details of this second sale.
Will apartment loan interests be reduced to 6%?
Such a move will lead to various problems. It would take a large amount of money and would also damage the market structure. It will be a social welfare program, and so will have to be discussed from various perspectives.
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