1 GOVERNMENT ORDERS UNINTERRUPTED GOAL TRANSPORTATION THROUGH GASHUUNSUKHAIT, KHANGI BORDER CROSSINGS WWW.MONTSAME.MN PUBLISHED:2026/02/26      2 CONCESSIONAL LOAN AGREEMENT SIGNED UNDER ‘WHITE GOLD’ NATIONAL MOVEMENT WWW.MONTSAME.MN PUBLISHED:2026/02/26      3 MONGOLIA MOVES TO NEXT STAGE OF COPPER SMELTER SELECTION PROCESS WWW.MONTSAME.MN PUBLISHED:2026/02/26      4 INVESTMENT OPPORTUNITY IN MONGOLIAN MINING INTRODUCED IN LONDON WWW.MONTSAME.MN PUBLISHED:2026/02/26      5 MONGOLIA SEEKS LONDON STOCK EXCHANGE LISTINGS FOR MINING COMPANIES WWW.MONTSAME.MN PUBLISHED:2026/02/26      6 TMK ENERGY SETS NEW GAS OUTPUT RECORD AT MONGOLIAN CSG PILOT WWW.TIPRANKS.COM PUBLISHED:2026/02/26      7 WILL MONGOLIA BAN SOCIAL NETWORKS FOR CHILDREN, AS AUSTRALIA AND FRANCE HAVE DONE? WWW.OPEN.KG PUBLISHED:2026/02/26      8 FOREIGN TRADE TURNOVER REACHES USD 2.6 BILLION WWW.MONTSAME.MN PUBLISHED:2026/02/25      9 MONGOLIA REVOKES PERMITS OF SIX FOREIGN NGOS WWW.MONTSAME.MN PUBLISHED:2026/02/25      10 MINING DRIVES MONGOLIA’S ECONOMY AS REFORM MOMENTUM BUILDS WWW.EASTASIAFORUM.ORG PUBLISHED:2026/02/25      БӨӨРӨЛЖҮҮТИЙН ЦАХИЛГААН СТАНЦ 300 САЯ АМ.ДОЛЛАРЫН САНХҮҮЖИЛТ АМЖИЛТТАЙ БОСГОЛОО WWW.ITOIM.MN НИЙТЭЛСЭН:2026/02/26     ГАДААДЫН 95 ИРГЭНИЙГ УЛСЫН ХИЛЭЭР ОРУУЛАЛГҮЙ БУЦААЖЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/02/26     ЗЭСИЙН БАЯЖМАЛ ХАЙЛУУЛАХ, БОЛОВСРУУЛАХ ҮЙЛДВЭРИЙН ХӨРӨНГӨ ОРУУЛАГЧИЙГ ИРЭХ ТАВДУГААР САРД ТОДРУУЛНА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/26     УЛААНБААТАР-ЛҮНГИЙН ЗАМЫГ ЗУРГААН ЭГНЭЭ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/26     ЖАЙКА БОЛОН МТҮП МЭДЭЭЛЭЛ ТЕХНОЛОГИЙН САЛБАРЫГ ХӨГЖҮҮЛЭХ ТӨСЛИЙГ ХЭРЭГЖҮҮЛЖ ЭХЭЛЛЭЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2026/02/26     ЕРӨНХИЙ САЙДЫН АХЛАХ ЗӨВЛӨХ БӨГӨӨД АЖЛЫН АЛБАНЫ ДАРГААР Ж.САНДАГСҮРЭНГ ТОМИЛЖЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/02/26     БАРАА БҮТЭЭГДЭХҮҮНИЙ ҮНЭ САРЫН ХУГАЦААНД 2.7 ХУВИАР ӨСЧЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2026/02/26     НИЙСЛЭЛ ЗАРДЛАА ТЭЛЖ, ТРАМВАЙН ТӨСӨЛД 350 ТЭРБУМЫГ ЗАРЦУУЛНА WWW.NEWS.MN НИЙТЭЛСЭН:2026/02/25     САНГИЙТ КАУР ДЕО: МАЛАЙЗЫН ТӨР БУРУУТАЙ ГЭДГИЙГ ШИЙДҮҮЛЭХ ЭЦСИЙН БОЛОМЖ УЧРААС МОНГОЛЫН ТӨР ХАМТРАН АЖИЛЛАХЫГ ХҮСЭЖ БАЙНА WWW.ITOIM.MN НИЙТЭЛСЭН:2026/02/25     НИЙСЛЭЛИЙН ТӨСӨВ: COP17 ХУРАЛД 70 ТЭРБУМ ЗАРЦУУЛЖ, 200 ТЭРБУМЫН БОНД БОСГОЖ V ЦАХИЛГААН СТАНЦ БАРИНА WWW.ITOIM.MN НИЙТЭЛСЭН:2026/02/25    
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