During the discussion at the Standing Committee on Security and Foreign Policy on the draft law to approve an aid offer from Germany, some MPs cautioned that if the MNT continues to gain in strength against foreign currencies it might become difficult to pay back loans taken in foreign currency. The present offer of Euro 5,692,577 includes Euro 892.577 as an outright grant while Euro 4.8 million will be a soft loan, repayable in 40 years at annual 0.75 percent interest. The money will be used by Ipotec Corporation to give 10-year loans of up to MNT30 million to low- and middle-income citizens to buy new apartments or renovate old ones. The annual interest will be eight percent.

Minister for Finance S.Bayartsogt said the anticipated growth in the mining sector might leave the other sectors behind and the loan will be of help in the development of the construction sector. When MPs asked whether the interest rate can be reduced, he said it was already the minimum possible. He also said Mongolia is among the countries that have taken the most loans from the Asian Development Bank and the World Bank.

MP N.Ganbyamba said more money is needed to provide apartments to more people. He said high price does not always mean good quality, and wanted financial help to be given to companies that built apartments that sold for MNT 390,000 per sq. m.