1 UNDP, GEF, AND GOVERNMENT OF MONGOLIA LAUNCH GREEN AND INCLUSIVE CITIES INITIATIVE TO TRANSFORM URBAN DEVELOPMENT WWW.UNDP.ORG PUBLISHED:2026/04/29      2 JADE GAS HOLDINGS SECURES KEY APPROVAL FOR MONGOLIAN GAS PRODUCTION LICENCE WWW.SMALLCAPS.COM.AU PUBLISHED:2026/04/28      3 MARKET ENTERING SHORT-TERM STABLE GROWTH WWW.MONTSAME.MN PUBLISHED:2026/04/28      4 BEAR ATTACKS LIVESTOCK, DESTROYS BEEHIVE IN SELENGE WWW.MONTSAME.MN PUBLISHED:2026/04/28      5 MONGOLIA HAS SUBMITTED A BID TO HOST THE 2038 ASIAN GAMES, COMPETING WITH SOUTH KOREA AND INDIA WWW.OPEN.KG PUBLISHED:2026/04/28      6 WHAT CAN WE, MONGOLIANS, LEARN FROM THE COUNTRY THAT PRODUCES 40% OF THE WORLD'S URANIUM? WWW.OPEN.KG PUBLISHED:2026/04/28      7 EXPERTS HIGHLY EVALUATE ECONOMIC COOPERATION BETWEEN MONGOLIA, CHINA, AND RUSSIA AT THE TRANSBAIKAL FORUM WWW.OPEN.KG PUBLISHED:2026/04/28      8 MONGOLIA IS REDEFINING STEPPE DIPLOMACY WITH KAZAKHSTAN WWW.MONTSAME.MN PUBLISHED:2026/04/28      9 15 BUILDINGS, FACILITIES RETURNED TO MUNICIPAL OWNERSHIP OVER THE PAST TWO YEARS WWW.MONTSAME.MN PUBLISHED:2026/04/28      10 SENDLY NBFI JSC AWARDED BEST MONEY TRANSFER PROVIDER IN MONGOLIA 2026 BY GLOBAL BANKING & FINANCE REVIEW® WWW.GLOBALBANKINGANDFINANCE.COM PUBLISHED:2026/04/28      ТАЗ: 2025 ОНД 13284 ХҮН ТӨРИЙН АЛБАНААС ГАРСАН WWW.GOGO.MN НИЙТЭЛСЭН:2026/04/28     Г.ЭНХТАЙВАН: БАНКУУД ГАДНААС УРТ ХУГАЦААТАЙ ЭХ ҮҮСВЭР ТАТВАЛ МОНГОЛБАНК ДЭМЖИНЭ WWW.GOGO.MN НИЙТЭЛСЭН:2026/04/28     ЭНЭ ОНД 34 БАЙРШИЛД 410 ГАРААШ БУУЛГАНА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/04/28     МУИС-ИЙН ХУУЛЬ ЗҮЙН СУРГУУЛИЙН БАРИЛГА ИРЭХ ОНЫ ЭХЭНД БҮРЭН АШИГЛАЛТАД ОРНО WWW.NEWS.MN НИЙТЭЛСЭН:2026/04/28     ЭКСПОРТЫН БООМТУУД ДЭЭРХ ГААЛИЙН БАЙЦААГЧ НАРЫГ УРТАСГАСАН ЦАГААР АЖИЛЛАХЫГ ҮҮРЭГ БОЛГОЖЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2026/04/28     НОГООН НУУР ОРЧИМД ХИЙМЭЛ НУУР, НОГООН БАЙГУУЛАМЖ БҮХИЙ ЦЭЦЭРЛЭГТ ХҮРЭЭЛЭН БАЙГУУЛНА ГЭВ WWW.EGUUR.MN НИЙТЭЛСЭН:2026/04/28     Л.ЭНХ-АМГАЛАН: БОЛОВСРОЛЫН ЯАМНЫ ТЕНДЕРИЙН ХАР ЖАГСААЛТЫГ ЗАРЛАНА WWW.EGUUR.MN НИЙТЭЛСЭН:2026/04/28     ӨДӨРТ 4 ТОНН БОРДОО БОЛОВСРУУЛДАГ ҮЙЛДВЭР АШИГЛАЛТАД ОРОВ WWW.NEWS.MN НИЙТЭЛСЭН:2026/04/28     ЕАЭЗХ: ШИНЭ ЗАХ ЗЭЭЛД ГАРАХ БОЛОМЖ НЭЭГДСЭН Ч БЭЛТГЭЛ ДУТУУ БАЙНА WWW.ITOIM.MN НИЙТЭЛСЭН:2026/04/28     МАН-ЫН БҮЛЭГ ХУДАЛДАА, АЖ ҮЙЛДВЭРИЙН ТАНХИМЫН ТУХАЙ ХУУЛИЙГ ДЭМЖЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2026/04/28    
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