Construction material suppliers receive 100 billion MNT soft loan
The government announced that the Central Bank of Mongolia has granted a soft loan of 100 billion MNT to construction cement and reinforcement suppliers, as part a government project to decrease housing prices by reducing the cost of key construction materials.
Earlier this year, the government and the Central Bank allocated 370 billion MNT for the loan granted to construction material suppliers.
Studies show that around 90 percent of construction companies operate through high interest loans from commercial banks. The expense of these interest payments often get passed on to clients. Housing construction projects also involve numerous stages of lengthy, drawn-out approvals, and often add to inflated housing prices.
The government has already initiated programs to decrease the number of approvals and signatures needed to commence and carry out operations in the construction sector. The government has designated 200 billion MNT for this year’s infrastructure development projects, some of which are believed to help alleviate housing costs upon completion.
The most costly part of construction can be connecting to critical infrastructure, such as water, sewage pipes, power lines and heating grids.
Short URL: http://ubpost.mongolnews.mn/?p=4106
Earlier this year, the government and the Central Bank allocated 370 billion MNT for the loan granted to construction material suppliers.
Studies show that around 90 percent of construction companies operate through high interest loans from commercial banks. The expense of these interest payments often get passed on to clients. Housing construction projects also involve numerous stages of lengthy, drawn-out approvals, and often add to inflated housing prices.
The government has already initiated programs to decrease the number of approvals and signatures needed to commence and carry out operations in the construction sector. The government has designated 200 billion MNT for this year’s infrastructure development projects, some of which are believed to help alleviate housing costs upon completion.
The most costly part of construction can be connecting to critical infrastructure, such as water, sewage pipes, power lines and heating grids.
Short URL: http://ubpost.mongolnews.mn/?p=4106
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