1 PM: ONLY AN ORDERLY STATE CAN DELIVER ECONOMIC GROWTH TO CITIZENS WWW.MONTSAME.MN PUBLISHED:2026/01/16      2 JAPAN GRANT TO SUPPORT POWER GRID RELIABILITY WWW.MONTSAME.MN PUBLISHED:2026/01/16      3 MONGOLIA TO DEEPEN COOPERATION WITH CHINA IN THE FIELD OF RESPONSIBLE MINERAL EXTRACTION WWW.OPEN.KG PUBLISHED:2026/01/16      4 SPRING AIRLINES PLANS DIRECT SHANGHAI–ULAANBAATAR FLIGHTS WWW.MONTSAME.MN PUBLISHED:2026/01/16      5 DRIVING FINANCIAL INCLUSION IN MONGOLIA: INVESTMENT IN INVESCORE WWW.TRIODOS-IM.COM PUBLISHED:2026/01/15      6 ‘ERDENES TAVANTOLGOI’ JSC SETS ALL-TIME DAILY RECORD FOR COAL EXPORTS WWW.MONTSAME.MN PUBLISHED:2026/01/15      7 SOUTH KOREA JOINS CHINA, JAPAN, GERMANY, RUSSIA AND KAZAKHSTAN IN ACCELERATING MONGOLIA TOURISM BOOM WITH RECORD-BREAKING VISITOR SPEND, STRONG WINTER DEMAND AND RISING FOUR-SEASON TRAVEL APPEAL WWW.TRAVELANDTOURWORLD.COM PUBLISHED:2026/01/15      8 US PAUSES IMMIGRANT VISA PROCESSING FOR 75 COUNTRIES, 13 IN ASIA-PACIFIC WWW.THEDIPLOMAT.COM PUBLISHED:2026/01/15      9 MONGOLIA WELCOMES MORE THAN TWENTY ONE THOUSAND TOURISTS IN JANUARY 2026, HIGHLIGHTING ITS STRONG WINTER TOURISM GROWTH AND ESTABLISHING ITSELF AS A FOUR-SEASON DESTINATION WWW.TRAVELANDTOURWORLD.COM PUBLISHED:2026/01/15      10 MONGOLIA, CHINA REAFFIRM COMMITMENT TO RAISE TRADE TURNOVER TO USD 20 BILLION WWW.MONTSAME.MN PUBLISHED:2026/01/15      ХЯТАДЫН ҮНДЭСНИЙ ГАЗРЫН ТОСНЫ КОРПОРАЦИТАЙ ШАТАХУУНЫ НИЙЛҮҮЛЭЛТИЙГ НЭМЭГДҮҮЛЭХ УРТ ХУГАЦААНЫ ГЭРЭЭ БАЙГУУЛНА WWW.ITOIM.MN НИЙТЭЛСЭН:2026/01/16     "СЭЛБЭ 20 МИНУТЫН ХОТ" БҮСЭД СОНГОН ШАЛГАРУУЛАЛТ ЗАРЛАЛАА WWW.NEWS.MN НИЙТЭЛСЭН:2026/01/16     2025 ОНД МОНГОЛ УЛС НИЙТ 90.2 САЯ ТОНН НҮҮРС ЭКСПОРТОЛЖ РЕКОРД ЭВДСЭН Ч ҮНЭ УНАСААР БАЙНА WWW.EGUUR.MN НИЙТЭЛСЭН:2026/01/16     МОНГОЛ УЛС ХЯТАД УЛСТАЙ ХАРИУЦЛАГАТАЙ НОГООН УУЛ УУРХАЙГ ХӨГЖҮҮЛЭХ ХАМТЫН АЖИЛЛАГААГАА ГҮНЗГИЙРҮҮЛНЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/01/15     “ВИЗ МЭДҮҮЛЭГЧИД ВИЗИЙН МЭДҮҮЛГЭЭ БӨГЛӨН, ТОВЛОСОН ЦАГТАА ЯРИЛЦЛАГАДАА ОРНО” WWW.EGUUR.MN НИЙТЭЛСЭН:2026/01/15     БНХАУ-ТАЙ ХАМТРАН ХИЛ ОРЧМЫН БҮСЭД ГЕОЛОГИЙН СУДАЛГАА ХИЙХЭЭР БОЛЛОО WWW.EAGLE.MN НИЙТЭЛСЭН:2026/01/15     SPRING AIRLINE КОМПАНИ ШАНХАЙ-УЛААНБААТАР-ШАНХАЙ ЧИГЛЭЛД ШУУД НИСЛЭГ ҮЙЛДЭХЭЭР ТӨЛӨВЛӨЖЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/01/15     О.ЦОГТГЭРЭЛ: АН АНХАН, ДУНД ШАТНААСАА 100 ХУВЬ ШИНЭЧЛЭЛ ХИЙНЭ WWW.NEWS.MN НИЙТЭЛСЭН:2026/01/15     ТРАМПЫН ЗАСАГ ЗАХИРГАА МОНГОЛ ЗЭРЭГ 75 УЛСЫН ИРГЭДЭД ЦАГААЧЛАЛЫН ВИЗ ОЛГОХЫГ ЗОГСООЛОО WWW.ITOIM.MN НИЙТЭЛСЭН:2026/01/15     ДУЛААНЫ ТАВДУГААР ЦАХИЛГААН СТАНЦЫН БАРИЛГА УГСРАЛТЫН АЖЛЫГ ЭНЭ ОНД ЭХЛҮҮЛНЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/01/15    

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