Specialized Housing Finance Bank to Be Established

Ulaanbaatar, July 24, 2025 /MONTSAME/. During its regular session of the Cabinet of Mongolia on July 24, 2025, a Working Group was established to study and develop proposals for the formation of a specialized bank for housing finance. With the First Deputy Prime Minister and Minister of Economy and Development, Uchral Nyam-Osor, leading the Working Group.

Since 2013, the Government and the Bank of Mongolia have jointly implemented the “Program to Establish a Sustainable Housing Finance System.” Under this program, concessional loans totaling MNT 9.2 trillion have been issued to approximately 132,000 borrowers. While a securities-based financing mechanism has been developed, challenges remain in securing stable long-term funding sources, reducing costs, and attracting foreign investment.

Head of the Parliamentary Office’s Media and Public Relations Division Baasandamba Noov stated, “After his appointment, Prime Minister Zandanshatar Gombojav announced from the rostrum of Parliament that a specialized housing bank would be established to improve the quality of life for citizens and increase access to affordable housing. In line with this policy, the Government has established a working group tasked with drafting the proposal and presenting it at a Cabinet meeting before August 13. The group is led by First Deputy Prime Minister and Minister of Economy and Development Uchral Nyam-Osor and includes Chief Cabinet Secretariat Byambatsogt Sandag, Minister of Finance Javhlan Bold, Minister of Environment and Climate Change Batbaatar Bat, and Minister of Family, Labor and Social Protection Aubakir Telukhan, among other officials. This marks the beginning of the practical implementation of the Prime Minister’s policy to establish a housing bank.”

In the past four years, the volume of newly issued housing loans has exceeded the program’s loans by a factor of 1.5. The Cabinet emphasized that it is essential not only to focus on financing the current program but also to establish a comprehensive legal and policy framework for a long-term housing finance system. Accordingly, the working group will focus on developing a Law on Housing Finance in line with international best practices, creating a new Housing Finance Corporation, and supporting mortgage-backed and collateralized securities through tax policy measures.