1 PROTECTION ZONES TO BE ESTABLISHED FOR CEMETERY COMPLEXES OF THE HUNNU NOBILITY WWW.MONTSAME.MN PUBLISHED:2026/07/30      2 MINISTERS INSTRUCTED TO ADVANCE POWER PLANT PROJECTS AHEAD OF WINTER WWW.MONTSAME.MN PUBLISHED:2026/07/30      3 VEHICLE TRAFFIC TO BE REGULATED BY EVEN, ODD LICENSE PLATE NUMBERS FROM AUGUST 15 TO SEPTEMBER 12 WWW.MONTSAME.MN PUBLISHED:2026/07/30      4 NATIONAL GUARD OFFICER ADMITS USING GOVERNMENT TRAVEL CARD TO SUPPORT SECRET SECOND WIFE WWW.STRIPES.COM PUBLISHED:2026/07/30      5 CAREC SECRETARIAT BRIEFS COMMERCE MINISTER ON REGIONAL TRADE AGENDA, MONGOLIA MINISTERIAL CONFERENCE WWW.APP.COM.PK PUBLISHED:2026/07/30      6 FROM READINESS TO ACTION: MONGOLIA'S CARBON MARKET JOURNEY WWW.UNDP.ORG PUBLISHED:2026/07/30      7 ANCIENT IRRIGATION SYSTEM FOUND IN MONGOLIA SHEDS NEW LIGHT ON EARLY TURKIC FARMING WWW.REUTERS.COM PUBLISHED:2026/07/30      8 MONGOLIAN YOUTH SHOWCASE NATIONAL HERITAGE AT INTERNATIONAL CULTURAL EXCHANGE WWW.MONTSAME.MN PUBLISHED:2026/07/29      9 ROYAL ACADEMY SIGNS MONGOLIA MOU TO BOOST RESEARCH AND DEVELOPMENT TIES WWW.THESTAR.COM PUBLISHED:2026/07/29      10 TRADE BALANCE REACHES USD 4.5 BILLION SURPLUS, INCREASING 4.2 TIMES YOY WWW.MONTSAME.MN PUBLISHED:2026/07/29      ЕВРОПЫН ХОЛБООНЫ САНХҮҮЖИЛТТЭЙ “ДУЛААН ШИЙДЭЛ II” ТӨСӨЛ 2022-2026 ОНЫ ХООРОНД АМЖИЛТТАЙ ХЭРЭГЖИЖ ДУУСЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/07/30     АМГТГ: УЛСЫН ХЭМЖЭЭНД АИ-92 БЕНЗИНИЙ 17, ДИЗЕЛЬ ТҮЛШНИЙ 23 ХОНОГИЙН НӨӨЦТЭЙ БАЙНА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/07/30     Б.ПҮРЭВДАГВА: НАЙМДУГААР САРЫН 15-НААС АВТОМАШИНЫГ ТЭГШ, СОНДГОЙ ДУГААРААР ХӨДӨЛГӨӨНД ОРОЛЦУУЛНА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/07/30     Б.ПҮРЭВДАГВА: ЭНЭ ӨВӨЛ НИЙСЛЭЛЧҮҮД ХАГАС КОКС БОЛОН САЙЖРУУЛСАН ТҮЛШ ТҮЛНЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/07/30     УЛСТӨРЧДИЙН ЭЕРЭГ РЕЙТИНГИЙГ У.ХҮРЭЛСҮХ, СӨРӨГ РЕЙТИНГИЙГ Н.УЧРАЛ ТЭРГҮҮЛЖЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/07/30     БОРЖИН БРОДЮРЫН ШИНЭЧЛЭЛ АУДИТЫН ШАЛГАЛТАД БҮДЭРЧЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2026/07/30     МОНГОЛ-ОРОСЫН ХИЛИЙГ ХАМТРАН ШАЛГАХ АЖИЛ 85 ХУВЬТАЙ БАЙНА WWW.NEWS.MN НИЙТЭЛСЭН:2026/07/30     300 МВТ-ЫН ХҮЧИН ЧАДАЛТАЙ ЦАХИЛГААН СТАНЦЫН ШАВ ТАВИЛАА WWW.GOGO.MN НИЙТЭЛСЭН:2026/07/29     COP17-Г ЗОХИОН БАЙГУУЛАХАД 250 ТЭРБУМ ТӨГРӨГ ЗАРЦУУЛЖ, 150-170 ТЭРБУМ ТӨГРӨГ ОЛНО WWW.ITOIM.MN НИЙТЭЛСЭН:2026/07/29     ШАТАХУУНЫ 22 АГУУЛАХ САВ БАРИХ АЖИЛ ЭХЭЛЛЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2026/07/29    
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