Construction companies to receive 370 billion MNT in soft loans
The Ministry of Construction and Urban Development and the Agency for Fair Competition and Consumer Rights signed a 370 billion MNT soft loan agreement with construction material suppliers today, on the condition that the suppliers keep their prices stable until October, the end of construction season.
The soft loan agreement is part of the Price Stabilization Program implemented by Mongol Bank and the Ministry of Construction and Urban Development.
The Chairman of the Cement Business Operator’s Union’s board, B.Baatar said, “Our union was established on March 15. Mongolia uses around 3 million tons of cement each year. During the peak of construction season, the price of cement rises to around 210,000 MNT. Our union can ensure that the price of unpacked cement remains 170,000 MNT and packed cement at 165,000 MNT. Unpacked cement tends to need more maintenance and higher technology; therefore we have debated a great deal about whether to price it at 170,000 MNT or 165,000 MNT. But all parties managed to come to an agreement and the contract was signed.”
The contract states that Mongol Bank will provide a soft loan of 370 billion MNT to construction material suppliers. Currently, more than 50 enterprises that supply reinforced steel and cement have agreed to the contract.
“Companies will receive loans over 400 million MNT. The prices of construction material reach their peak during July and August. In some cases, the prices of reinforced steel have reached as high as 145,000 MNT and cement has reached 210,000 MNT. The loan agreement will make it possible to maintain price at current levels,” said B.Tsedensamba, Head of Construction, and Construction Material Production Policy Implementation Management Department of the Ministry of Construction and Urban Development.
The Ministry of Construction and Urban Development is currently working towards a long-term goal of reducing housing prices to between 1 million and 1.5 million MNT per square meter. A ministry representative told the press that the soft loan agreement with suppliers will help maintain construction costs at an affordable level, thereby making it possible to decrease housing prices to the desired level.
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The soft loan agreement is part of the Price Stabilization Program implemented by Mongol Bank and the Ministry of Construction and Urban Development.
The Chairman of the Cement Business Operator’s Union’s board, B.Baatar said, “Our union was established on March 15. Mongolia uses around 3 million tons of cement each year. During the peak of construction season, the price of cement rises to around 210,000 MNT. Our union can ensure that the price of unpacked cement remains 170,000 MNT and packed cement at 165,000 MNT. Unpacked cement tends to need more maintenance and higher technology; therefore we have debated a great deal about whether to price it at 170,000 MNT or 165,000 MNT. But all parties managed to come to an agreement and the contract was signed.”
The contract states that Mongol Bank will provide a soft loan of 370 billion MNT to construction material suppliers. Currently, more than 50 enterprises that supply reinforced steel and cement have agreed to the contract.
“Companies will receive loans over 400 million MNT. The prices of construction material reach their peak during July and August. In some cases, the prices of reinforced steel have reached as high as 145,000 MNT and cement has reached 210,000 MNT. The loan agreement will make it possible to maintain price at current levels,” said B.Tsedensamba, Head of Construction, and Construction Material Production Policy Implementation Management Department of the Ministry of Construction and Urban Development.
The Ministry of Construction and Urban Development is currently working towards a long-term goal of reducing housing prices to between 1 million and 1.5 million MNT per square meter. A ministry representative told the press that the soft loan agreement with suppliers will help maintain construction costs at an affordable level, thereby making it possible to decrease housing prices to the desired level.
Short URL: http://ubpost.mongolnews.mn/?p=3501
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