The matter regarding how to formulate the regulation of the allocating of mortgage loans to civilians at an annual interest rate of 8 /±1/ via commercial banks was re-discussed during Tuesday`s cabinet meeting at Government House.

The Government of Mongolia approved the main regulation of housing Ipotek loans and delivered it to commercial banks. The Central Bank of Mongolia formulated the specific regulation of the Ipotek loans.

During the discussion, Prime Minister N.Altankhuyag confirmed that the loans, at an annual interest rate of 8 /±1/ with terms of up to 20 years, will be issued to civilians who want to purchase an apartment in the new or old town from Monday June 17th.
But credit for apartments will only be issued via commercial banks which meet the requirements of the Central Bank of Mongolia under the term of not exceeding  80 square meters in a new or old apartment.

According to the regulation, a civilian must have paid 10-30 percent in an advance fee for that apartment.

The former Government of Mongolia launched a program to provide civilians with interests as low as 6 % annually in February 2012, but after the new Government was formed the loans were haltd and banks stopped issuing loans in order to continue the loans under new regulations.

Civilians who were issued apartment loans previously can also transfer the loan into the 8 /±1/ % loans.