1 TİKA-BACKED PROJECT ESTABLISHES PEDIATRIC BONE MARROW TRANSPLANT CAPACITY IN MONGOLIA WWW.AZERNEWS.AZ PUBLISHED:2026/02/13      2 COLD WINTER KILLS 26,300 HEAD OF LIVESTOCK IN MONGOLIA WWW.XINHUANET.COM PUBLISHED:2026/02/13      3 CAPITAL CITY AUTHORIZED TO ISSUE BONDS FOR CHP PLANT NO.5 PROJECT FINANCING WWW.MONTSAME.MN PUBLISHED:2026/02/12      4 GL EVENTS SELECTED AS GENERAL CONTRACTOR FOR COP17 TEMPORARY FACILITIES WWW.MONTSAME.MN PUBLISHED:2026/02/12      5 LOCAL AUTHORITIES GRANTED LAND ALLOCATION POWERS WWW.MONTSAME.MN PUBLISHED:2026/02/12      6 AMERICANS HELPED MONGOLIANS DIGITIZE OVER 9,900 RARE MANUSCRIPTS AT THE NATIONAL LIBRARY WWW.OPEN.KG PUBLISHED:2026/02/12      7 CHINA BAOLI SIGNS MONGOLIA IRON ORE DEAL TO SHOWCASE DRY BENEFICIATION TECHNOLOGY WWW.TIPRANKS.COM PUBLISHED:2026/02/12      8 FOUR COUNTRIES RATIFY MONGOLIA’S EURASIAN INTERIM TRADE AGREEMENT WWW.ASIANEWS.NETWORK PUBLISHED:2026/02/12      9 MONGOLIA TO HOST GRAND SLAM TOURNAMENTS FOR NEXT 4 YEARS WWW.QAZINFORM.COM PUBLISHED:2026/02/12      10 GOVERNMENT AGREES ON 60 PERCENT BENEFIT SHARING IN STRATEGIC DEPOSITS WWW.MONTSAME.MN PUBLISHED:2026/02/11      БОР-ӨНДӨР – АЙРАГ ӨРТӨӨ ХООРОНД 54 КМ ШИЛЭН КАБЕЛЬ ТАВИЛАА WWW.EGUUR.MN НИЙТЭЛСЭН:2026/02/13     ТАМИРЧДААСАА ОЛОН БҮРЭЛДЭХҮҮНТЭЙ АЛБАНЫХНЫ ЗАРДЛЫГ ХЭН, ХААНААС ГАРГАСАН БЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/02/13     “СМАРТ ЭКО ТРАНС” ХХК-Д ДАВУУ ЭРХ ОЛГОСОН АСУУДЛЫГ АТГ, УЕП, ЦЕГ-Т ШИЛЖҮҮЛЭВ WWW.NEWS.MN НИЙТЭЛСЭН:2026/02/13     "ЕВРАЗИЙН ЭДИЙН ЗАСГИЙН ТҮР ХЭЛЭЛЦЭЭ АШИГТАЙ БАЙВАЛ 3 ЖИЛИЙН ДАРАА СУНГАНА" WWW.NEWS.MN НИЙТЭЛСЭН:2026/02/13     7.9 ТЭРБУМ ТӨГРӨГТЭЙ ТЭНЦЭХ ХЭМЖЭЭНИЙ ЮАНЬ, АМ.ДОЛЛАРЫГ ХУУРАМЧААР ХЭВЛЭН ИРГЭДИЙГ ЗАЛИЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/12     “ПАКИСТАН-МОНГОЛЫН B2B БИЗНЕС ЧУУЛГАН” & НИМАВА (УЛААНЫ ШАШИН) УРСГАЛЫН ӨВ СОЁЛЫН АЯЛАЛ ХӨТӨЛБӨР WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2026/02/12     ХИЛИЙН БҮС ДЭХ АСАР ТОМ ГАЗРЫН ХУЛГАЙ ИЛРЭВ WWW.NEWS.MN НИЙТЭЛСЭН:2026/02/12     МОНГОЛЫН ЗЭСИЙН ТӨСЛИЙН "РИО ТИНТО"-ТОЙ ҮҮССЭН ГАЦААГ АРИЛГАХ ЗӨВЛӨЛД ЭПШТЭЙН БАГТАЖ БАЙЖЭЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2026/02/12     Б.БАТЦЭЦЭГ: СОЛОНГОС ДАХЬ МАНАЙ УЛСЫН ИРГЭД САНАА ЗОВМООР ОЛОН ЗӨРЧИЛ ГАРГАДАГ WWW.EGUUR.MN НИЙТЭЛСЭН:2026/02/12     БОРТЭЭГИЙН ОРДЫГ ЭДИЙН ЗАСГИЙН ЭРГЭЛТЭД ОРУУЛЖ, ХАМТРАН АЖИЛЛАХ АЖ АХУЙН НЭГЖИЙГ ШАЛГАРУУЛНА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/12    

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