1 RIO TINTO AGREES NEW FINANCIAL TERMS FOR $18BN COPPER MINE PROJECT WWW.FT.COM PUBLISHED:2026/07/01      2 RIO TINTO'S OYU TOLGOI RESET: MONGOLIA PUSHES FOR A BIGGER SHARE OF ITS MINING WEALTH WWW.CAPITALMARKETS.MN PUBLISHED:2026/07/01      3 PRIME MINISTER UCHRAL: GOVERNMENT ACHIEVES HISTORIC BREAKTHROUGH IN OYU TOLGOI NEGOTIATIONS WWW.MONTSAME.MN PUBLISHED:2026/07/01      4 STATE BUDGET RECORDED A MNT 1 TRILLION DEFICIT IN 2025 WWW.GOGO.MN PUBLISHED:2026/07/01      5 JAPAN TO SUPPLY DIAGNOSTIC EQUIPMENT TO NATIONAL CANCER CENTER WWW.MONTSAME.MN PUBLISHED:2026/07/01      6 MIAT - MONGOLIAN AIRLINES MULLS 10 AIRBUS JETS WWW.CH-AVIATION.COM PUBLISHED:2026/07/01      7 MONGOLIAN PRESIDENT HAILS CHINA-AIDED CENTRAL SEWAGE TREATMENT PLANT WWW.NEWS.CGTN.COM PUBLISHED:2026/07/01      8 RIO TINTO AND GOVERNMENT OF MONGOLIA AGREE TO ADJUST OYU TOLGOI SHAREHOLDER LOAN INTEREST RATE WWW.MARKETSCREENER.COM PUBLISHED:2026/07/01      9 CENTRAL WASTEWATER TREATMENT PLANT SUPPORTS CITY EXPANSION, CUTS POLLUTION WWW.MONTSAME.MN PUBLISHED:2026/07/01      10 MONGOLIA SECURES USD 545 MILLION IN INVESTMENT AGREEMENTS AND MOUS WWW.MONTSAME.MN PUBLISHED:2026/07/01      НОТАРИАТЫН ҮЙЛЧИЛГЭЭГ 100 ХУВЬ ЦАХИМД ШИЛЖҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/07/01     ЯПОН УЛСЫН 980 САЯ ИЕНИЙ БУЦАЛТГҮЙ ТУСЛАМЖААР ХСҮТ-ИЙН ТОНОГ ТӨХӨӨРӨМЖИЙГ ШИНЭЧИЛНЭ WWW.CNBC.MN НИЙТЭЛСЭН:2026/07/01     МОНГОЛ УЛС АЯЛАЛ ЖУУЛЧЛАЛЫН ӨСӨЛТӨӨРӨӨ ДЭЛХИЙД ДӨРӨВДҮГЭЭРТ ЭРЭМБЭЛЭГДЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/07/01     “ГАЗРЫН ТОСНЫ ТУХАЙ ХУУЛЬД ӨӨРЧЛӨЛТ ОРУУЛАХ ТУХАЙ” ХУУЛИЙН ТӨСӨЛ ОЛОНХИЙН ДЭМЖЛЭГИЙГ АВЛАА WWW.CNBC.MN НИЙТЭЛСЭН:2026/07/01     ЗАСГИЙН ГАЗАР: ЗЭЭЛИЙН ХҮҮГ БУУРУУЛЖ, ОЮУТОЛГОЙН ХЭЛЭЛЦЭЭРТ ТҮҮХЭН АМЖИЛТ ГАРГАЛАА WWW.GOGO.MN НИЙТЭЛСЭН:2026/07/01     “НЭЭЛТТЭЙ ПАРЛАМЕНТ” ЦЭС И-МОНГОЛИА СИСТЕМД ШИНЭЭР НЭВТЭРЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/06/30     ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ХИЛ ДАМНАСАН ТӨМӨР ЗАМЫН БҮТЭЭН БАЙГУУЛАЛТ 35 ХУВЬД ХҮРЧЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2026/06/30     МОНГОЛ УЛС, ЕВРОПЫН ХОЛБООНЫ ХАМТЫН АЖИЛЛАГААНЫ ХАМТАРСАН ХОРООНЫ XXIV ХУРАЛДААН БОЛОВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/06/30     ҮАБЗ ОЮУ ТОЛГОЙН АСУУДЛААР ӨНӨӨДӨР ҮРГЭЛЖЛҮҮЛЭН ХУРАЛДАНА WWW.EGUUR.MN НИЙТЭЛСЭН:2026/06/30     УНГАРЫН OTP БАНК МОНГОЛЫН ЗАХ ЗЭЭЛД НЭВТРЭХ СОНИРХЛОО АЛБАН ЁСООР ИЛЭРХИЙЛЛЭЭ WWW.CNBC.MN НИЙТЭЛСЭН:2026/06/30    
Англи амин дэм Монгол улсад албан ёсоор бүртгэгдлээ.

Mongolian c.bank rejects interest rate cap as austerity bites www.reuters.com

ULAANBAATAR, March 20 (Reuters) - Mongolia’s central bank has rejected lawmakers’ proposals to cap or cut interest rates, currently among the world’s highest, as rifts deepen over an economic rescue package agreed with the International Monetary Fund (IMF) last year.

As parliament discusses a bill to prevent interest rates on commercial bank loans from exceeding 18 percent, Bank of Mongolia president Bayartsaikhan Nadmid proposed an alternative strategy during a forum on Tuesday.

“The central bank supports the strategy to decrease interest rates by enabling a macroeconomic environment for it, not by force or control,” he said.

Mongolia secured a $5.5 billion bailout with the IMF last May after an economic crisis left the landlocked Asian nation struggling to pay off its debts and sent its currency, the tugrik, into a tailspin.

The terms of the deal forced the government to raise taxes and cut spending, and also urged Mongolia to strengthen the independence of its banking system and make it less vulnerable to political interference.

Most of the austerity measures have been enacted by the ruling Mongolian People’s Party, but opposition politicians have expressed concern about the economic impact of high interest rates and are seeking powers to force banks to make cuts.

Mongolia has some of the world’s highest interest rates, averaging 19.4 percent in January, according to the central bank. The high rates have reduced economic activity and discouraged small businesses, analysts say.

Inflation currently stands at 6.9 percent, according to the Bank of Mongolia, below an 8 percent target.

Mongolia began subsidising mortgages in 2013 allowing homes to be bought at a rate of 8 percent. According to the Mongolian Mortgage Corporation, which manages the portfolio, total outstanding mortgages as of December 2016 stood at around 4 trillion tugrik ($1.67 billion).

However, the IMF has discouraged the central bank from participating in programmes it describes as “quasi-fiscal activity”.

Demberel Sambuu, a former legislator and head of an economic think tank, said demand for lower interest rates has been on the rise in recent years, but forcing banks to comply was not the solution.

“Fixing the maximum rates on loan interest would be an inefficient way,” he said.

$1 = 2,398 tugrik Reporting by Munkhchimeg Davaasharav and Terrence Edwards Editing by David Stanway and Sam Holmes



Published Date:2018-03-20