1 MONGOLIA, EAEU ROLL OUT TARIFF CUTS AS NEW TRADE DEAL TAKES EFFECT WWW.QAZINFORM.COM PUBLISHED:2026/07/23      2 INDUSTRIAL PRODUCTION INCREASES BY 55.9% WWW.MONTSAME.MN PUBLISHED:2026/07/23      3 SEABUCKTHORN OIL STANDARD APPROVED WWW.UBPOST.MN PUBLISHED:2026/07/23      4 ULAANBAATAR CABLE CAR CONSTRUCTION REACHES 85 PERCENT COMPLETION WWW.MONTSAME.MN PUBLISHED:2026/07/23      5 MONGOLIAN MINING CORPORATION REPORTS Q2 2026 PRODUCTION DATA WWW.NG.INVESTING.COM PUBLISHED:2026/07/23      6 1033RD ESC SUPPORTS EXERCISE KHAAN QUEST IN MONGOLIA WWW.VA.NG.MIL PUBLISHED:2026/07/23      7 UNDP AND KOICA LAUNCH SECOND PHASE OF PARTNERSHIP TO ADVANCE WOMEN’S AND YOUTH LEADERSHIP IN MONGOLIA WWW.UNDP.ORG PUBLISHED:2026/07/23      8 MONGOLIA PM N.UCHRAL ORDERS ADVANCE NOTICE BY AUGUST 1 FOR COP17-RELATED ROAD CLOSURES WWW.ASIANEWS.NETWORK PUBLISHED:2026/07/22      9 CHINA TO SUPPORT SUPPLY OF AI-92 GASOLINE AND AVIATION FUEL TO MONGOLIA WWW.GOGO.MN PUBLISHED:2026/07/22      10 MONGOLIA, TAJIKISTAN DEEPEN STRATEGIC PARTNERSHIP WITH 11 NEW AGREEMENTS WWW.CASPIANPOST.COM PUBLISHED:2026/07/22      ТӨСВИЙН ТЭНЦВЭРЖҮҮЛСЭН ТЭНЦЭЛ ₮2.1 ИХ НАЯДЫН АЛДАГДАЛТАЙ ГАРЛАА WWW.CNBC.MN НИЙТЭЛСЭН:2026/07/23     ИПОТЕКТ ХАГАС ӨМЧЛӨЛИЙН ЗАГВАР НЭМЭГДСЭНЭЭР ОРОН СУУЦНЫ УРЬДЧИЛГАА 50 ХУВИАР БУУРНА WWW.ITOIM.MN НИЙТЭЛСЭН:2026/07/23     ОЛОН УЛС, УЛСЫН ЧАНАРТАЙ АВТО ЗАМ АШИГЛАСНЫ ТӨЛБӨРИЙН ШИНЭЧИЛСЭН ТАРИФ 8 ДУГААР САРЫН 1-НЭЭС ХЭРЭГЖИНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/07/23     ИРЭХ ӨВӨЛ 280 МЯНГАН ТОНН ХАГАС КОКСОН ТҮЛШ ХУДАЛДАН АВНА WWW.EGUUR.MN НИЙТЭЛСЭН:2026/07/23     ХАЛАМЖ, ТЭТГЭВЭР, ТЭТГЭМЖИД 1.3 ИХ НАЯДЫГ ОЛГОЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2026/07/23     МОНГОЛЫН АНХНЫ ДҮҮЖИН ТЭЭВРИЙГ ЕС ДҮГЭЭР САРААС ТУРШИЖ, XII САРД БҮРЭН АШИГЛАЛТАД ОРНО WWW.ITOIM.MN НИЙТЭЛСЭН:2026/07/23     СОР17: 190 ОРЧИМ ОРНЫ 2000 ГАРУЙ ЗОЧИН ТӨЛӨӨЛӨГЧ ОРОЛЦОХООР БҮРТГҮҮЛЭЭД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/07/23     ҮСХ: УЛСЫН ХЭМЖЭЭНД ИНФЛЯЦ 12.0 ХУВЬТАЙ ГАРЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/07/22     ГАДААД ХАРИЛЦААНЫ САЙД Б.БАТЦЭЦЭГ ИРЭХ ХОЁР ЖИЛ COP-ИЙН ЕРӨНХИЙЛӨГЧӨӨР АЖИЛЛАНА WWW.ITOIM.MN НИЙТЭЛСЭН:2026/07/22     ДИЗЕЛЬ ТҮЛШНИЙ ҮНЭ 4621 ТӨГРӨГӨӨС 4508 ТӨГРӨГ БОЛЖ БУУРЧЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2026/07/22    
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