Source: Ardiin Erkh                          Date: 27 April, 2011

Asked if the Government decision to provide citizens with apartment loans at a flat 6% interest would actually not mean tax payers’ money being used to settle the difference in interest with banks, Deputy Minister for Finance Ch.Gankhuyag said the idea was to issue bonds to raise the necessary funds. There are several other options, he said and added, “In any case, the Government can certainly use tax payers’ money to implement a policy for the nation’s good.”
He said the commercial banks were expected to be the principal holders of the bonds that will be sold to raise the funds with which the Development Bank plans to finance large programs and projects, and as such they will be the actual source of the loans, assuring them of an important place in the economy. He expressed the hope that 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 be the Government’s responsibility to prepare the necessary infrastructure for this.”