The Loan Department Director of the Apartment Financing Corporation, M.Ulambayar, has said that loans of up to MNT 40 million repayable within 20 years with 8 percent interest are being issued to government employees to buy one of the 4,000 apartments offered by the Government. A modification of the original proposal to allow employees to choose the apartments themselves is expected soon.

To be eligible for the loan program, one must have been a government employee for at least three years. The monthly repayment amount also must not exceed 45 percent of the household income. Applicants can have no other outstanding loans in their name whose repayment time is past.

All applications must have the following supporting documents: the ID card, a copy of the marriage license, a salary certificate, a list of real estate already owned, social insurance book, documents related to other household income and a copy of the agreement on the apartment buying. Commercial banks are, however, asking for many more documents.

So far, 781 of the 1,091 applications received have been found in order. The Apartment Financing Corporation will issue MNT 2.8 billion of loans to 119 people today.

Ulambayar also said no construction company has agreed to sell apartments for MNT 650,000 per sq. m in Ulaanbaatar. Apartments built in the provinces as part of the 40,000 households programs cost MNT 650,000 or less per sq. m.