Ministry of Construction and Urban Development, Mongolian Mortgage Corporation and Bloomberg TV Mongolia co-hosted “Smog-free Ulaanbaatar” forum. Government officials, environmental, construction, financial and technological experts, and non-governmental organization representatives attended the forum.
The forum’s agenda encompassed three main topics:
Topic one. “Housing – Clean air”, Mr. Tserenbat. N, Ministry of environment and tourism, Mr. Bayarkhuu.P, Deputy mayor, Ch.Khashchuluun, economist, and Kh.Avirmed, researcher sat on the panel.
Mr. Tserenbat reported “With the help of Ulaanbaatar’s citizens, within the framework of improving living environment, a 9 km sewage line was constructed in the area of Selbe and Bayarkhoshuu, to improve infrastructure in the ger districts. This spring, water supply and heating line will be constructed. Next targets for improvement are Denj 1000 and Dambadarjaa areas. The project will continue till 2020.”
Mr Ch.Khashchuluun, professor of the National University of Mongolia said that the transition to housing (or appartments) of ger district areas (100 ail, 3rd and 4th khoroolol and Gandan monastery) will be the solution to air pollution.
Topic two. “Housing – Market”, Sh.Lkhamsuren, Deputy Minister of Construction and Urban Development stressed that transition to apartment is the most effective solution to reduce air pollution.
As of today, 220 households living in ger areas are producing most of the smoke and smog in Ulaanbaatar city. Ger districts lead to 80% of the smoke that is considered disaster levels of air pollution. All though there are 33 thousand appartments on the market, 16 thousand were built to target the middle-income classes. These have yet to be sold or occupied.
In 2017, 7000 apartments were built in Ulaanbaatar and 5000 have purchased through mortgages. The remaining have not been sold as people’s income is low, making them unelegible to obtain mortgages.
Ms Kh.Bulgantuya, Deputy minister of Finance: In 2018, MNT300 billion will be allocated to mortgages. From 2019, Government of Mongolia will begin implementing this subsidized program. There are 3 ways to implement the program; (1) interest subsidy, (2) implement rent to own schemes, (3) support households in building their own smoke-free houses. Furthermore, she pointed out that the Government of Mongolia had allocated MNT8.3 billion to cut electicity tariffs at night for ger district to zero ( this program was initiate so that people in the ger area would use electric heating instead of coal stoves).
Topic three. “Housing – Suistanable finance”, Mr Gantulga, CEO of Mongolian Mortgage Corporation HFC LLC spoke about the subsidized mortgage program, which has enebled the issuance of 8 percent interest mortgages since 2013. He emphasized that as of December 2017, there are MNT4.2 trillion in mortages or 93000 separate loans. 78% of these loans are government subsidized, a total of MNT3.2 trillion mortgages have been disbursed to 68000 households. MIK has managed to purchase and securitize 60 percent of these loans.
Between 2013-2017, MIK issued RMBS, worth MNT3 trillion through 13 special purposed companies. As repayment MIK has paid MNT760 billion to senior tranche holder, which is equivalent to financing 12500 households for subsidized mortgages. From 2018 to 2020, MIK will pay MNT1 trillion to the senior tranche bondholder which could be used as funding to grant 6000 householdes with mortgages.
MIK has also announced that, based on its core compittence, it can co-operate with the government strategy. Furtheremore, issue collateralized bonds and covered bonds on the international market.
In conclusion, based on the 3 topics covered by the forum, attendees agreed that the transition to housing (apartments) is the most effective solution to air pollution.
Ministry of Construction and Urban Development, Mongolian Mortgage Corporation and Bloomberg TV Mongolia co-hosted “Smog-free Ulaanbaatar” forum. Government officials, environmental, construction, financial and technological experts, and non-governmental organization representatives attended the forum.
The forum’s agenda encompassed three main topics:
Topic one. “Housing – Clean air”, Mr. Tserenbat. N, Ministry of environment and tourism, Mr. Bayarkhuu.P, Deputy mayor, Ch.Khashchuluun, economist, and Kh.Avirmed, researcher sat on the panel.
Mr. Tserenbat reported “With the help of Ulaanbaatar’s citizens, within the framework of improving living environment, a 9 km sewage line was constructed in the area of Selbe and Bayarkhoshuu, to improve infrastructure in the ger districts. This spring, water supply and heating line will be constructed. Next targets for improvement are Denj 1000 and Dambadarjaa areas. The project will continue till 2020.”
Mr Ch.Khashchuluun, professor of the National University of Mongolia said that the transition to housing (or appartments) of ger district areas (100 ail, 3rd and 4th khoroolol and Gandan monastery) will be the solution to air pollution.
Topic two. “Housing – Market”, Sh.Lkhamsuren, Deputy Minister of Construction and Urban Development stressed that transition to apartment is the most effective solution to reduce air pollution.
As of today, 220 households living in ger areas are producing most of the smoke and smog in Ulaanbaatar city. Ger districts lead to 80% of the smoke that is considered disaster levels of air pollution. All though there are 33 thousand appartments on the market, 16 thousand were built to target the middle-income classes. These have yet to be sold or occupied.
In 2017, 7000 apartments were built in Ulaanbaatar and 5000 have purchased through mortgages. The remaining have not been sold as people’s income is low, making them unelegible to obtain mortgages.
Ms Kh.Bulgantuya, Deputy minister of Finance: In 2018, MNT300 billion will be allocated to mortgages. From 2019, Government of Mongolia will begin implementing this subsidized program. There are 3 ways to implement the program; (1) interest subsidy, (2) implement rent to own schemes, (3) support households in building their own smoke-free houses. Furthermore, she pointed out that the Government of Mongolia had allocated MNT8.3 billion to cut electicity tariffs at night for ger district to zero ( this program was initiate so that people in the ger area would use electric heating instead of coal stoves).
Topic three. “Housing – Suistanable finance”, Mr Gantulga, CEO of Mongolian Mortgage Corporation HFC LLC spoke about the subsidized mortgage program, which has enebled the issuance of 8 percent interest mortgages since 2013. He emphasized that as of December 2017, there are MNT4.2 trillion in mortages or 93000 separate loans. 78% of these loans are government subsidized, a total of MNT3.2 trillion mortgages have been disbursed to 68000 households. MIK has managed to purchase and securitize 60 percent of these loans.
Between 2013-2017, MIK issued RMBS, worth MNT3 trillion through 13 special purposed companies. As repayment MIK has paid MNT760 billion to senior tranche holder, which is equivalent to financing 12500 households for subsidized mortgages. From 2018 to 2020, MIK will pay MNT1 trillion to the senior tranche bondholder which could be used as funding to grant 6000 householdes with mortgages.
MIK has also announced that, based on its core compittence, it can co-operate with the government strategy. Furtheremore, issue collateralized bonds and covered bonds on the international market.
In conclusion, based on the 3 topics covered by the forum, attendees agreed that the transition to housing (apartments) is the most effective solution to air pollution.
