Under a program passed by the Parliament, the Government says it will build 100,000 new homes in Mongolia. According to the program, 75,000 homes will be built in Ulaanbaatar and 25,000 will be built in the countryside. But the Government is still trying to come up with the money needed to build the homes. That was discussed at Wednesday’s meeting of the Cabinet. Our correspondent spoke with Kh.Battulga, the Minister for Road, Transport and Urban Development.

– Can you explain how the “100,000 Homes” program will work?

– The program will be implemented with the backing of the Development Bank. According to the program, a total of 16 blocks of homes will be built in the city and the countryside. We are already planning to build the first of those blocks, which will be named Shine yarmag. We are considering taking a loan from the Chinese Bank to finance the work. You must remember that the Prime Minister signed a memorandum about this when he visited China last June. If the Development Bank gives assurance to pay back the loan, we will be able to build the Shine yarmag block first. Low- and average-income citizens will be able to take part in the program with loans on terms of 12 years and four percent a year. One of our main concerns is to begin vocational training. We will have to consider building a hospital and other businesses for the block’s 15,000 dwellers. If the Development Bank gives assurance, the work will begin by the end of the year.

– Last winter the Government promised to grant loans of six percent a year for a homes program. So far nothing has happened. What can you say about that?

-The interest rates from the Development Bank are too high. For instance, if the interest rate is more than six percent, the Government would have to pay the difference. So we are considering taking loans from Chinese banks at lower rates.

– Are you hopeful that the interest rate might be lowered?

– If we set the good groundwork and run the program well, we hope the interest rate will decrease.

– Will there be an allowance from the Human Development Fund for citizens to use for buying homes?

– We are considering that, but so far no decision has been made. It is still being discussed.