Ch.Gankhuyag pins hopes on successful bond sale
Deputy Minister for Finance Ch.Gankhuyag answers our journalist’s questions.
How is the Apartments Financing Corporation doing?
It is now working jointly with The National Development and Innovation Committee, the Ministries of Road, Transportation and Urban Development and of Finance, the Mongol Bank and the Mongolian Ipotek Corporation on determining ways of providing citizens with apartment loans at 6% interest.
How would banks be paid the difference in interest? Will tax payers bear the burden?
The Government has earlier issued several bonds to raise money for apartment loans to citizens. Something similar can be done in this case, too. In any case, the Government can certainly use tax payers’ money to implement a policy for the nation’s good. Wealso expect to raise capital at The Mongolian Stock Exchange. When health and social insurance sectors are restructured, insurance companies could invest in the construction sector. So there are many options.
What will the AFC do when such changes are made?
It will be the regulating and monitoring organization. It will plan infrastructure and new construction. The AFC was founded to implement the 40,000 Apartments program.
Why will we need commercial banks to give apartment loans when the Development Bank is meant to finance large programs and projects?
They will be expected to buy the bonds offered by the Development Bank, and so will be the actual source of the loans.
What will be the Government’s participation?
If the bonds do raise MNT100 billion, and the money is properly spent, we could resolve both the apartment and the air pollution problems in 10 years at the most. It will bethe Government’s responsibility to prepare the necessary infrastructure for this.
How is the Apartments Financing Corporation doing?
It is now working jointly with The National Development and Innovation Committee, the Ministries of Road, Transportation and Urban Development and of Finance, the Mongol Bank and the Mongolian Ipotek Corporation on determining ways of providing citizens with apartment loans at 6% interest.
How would banks be paid the difference in interest? Will tax payers bear the burden?
The Government has earlier issued several bonds to raise money for apartment loans to citizens. Something similar can be done in this case, too. In any case, the Government can certainly use tax payers’ money to implement a policy for the nation’s good. Wealso expect to raise capital at The Mongolian Stock Exchange. When health and social insurance sectors are restructured, insurance companies could invest in the construction sector. So there are many options.
What will the AFC do when such changes are made?
It will be the regulating and monitoring organization. It will plan infrastructure and new construction. The AFC was founded to implement the 40,000 Apartments program.
Why will we need commercial banks to give apartment loans when the Development Bank is meant to finance large programs and projects?
They will be expected to buy the bonds offered by the Development Bank, and so will be the actual source of the loans.
What will be the Government’s participation?
If the bonds do raise MNT100 billion, and the money is properly spent, we could resolve both the apartment and the air pollution problems in 10 years at the most. It will bethe Government’s responsibility to prepare the necessary infrastructure for this.
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