Mortgage FinancingMortgage financing
Mortgages (in percent of GDP)
Mortgages are mortgages granted on land using a mortgage letter. Housebuyers or builders can obtain financing (a loan), either to buy or protect against the building from a finance institute, such as a local banking establishment, either directly or via an intermediary. Mortgage credit attributes such as credit rating, repayment term, interest rates, repayment methods and other attributes can differ widely.
Mortgages in the most advanced economies, such as Denmark or the Netherlands, account for more than 100% of GDP.
Mortgage Financing in Mongolia: an Ideology
During my visit to Mongolia in November-December 2017, many of my interlocutors addressed the issue of the recent impact of the International Monetary Fund (IMF) supervision and its impact on many of Mongolia's business management sector s as they were preparing for large lending to the city.
In the context of its recommendation, the Mongol Bank (the Central Bank of Mongolia) transfers the responsibility for managing Mongolia's primary markets to the authorities, in particular the Ministry of Finance (IMF 2017, 15 and 67). It has done so in the context of redefining and restructuring the bank's relationship with the authorities of Mongolia, strengthened by the recent changes to Tambayny thuhai Hooul or the Law on the Central Bank of Mongolia.
Discussing with humans and studying this type of restructuring led to various forward-looking conceptional ideas about what an economics or finance agreement should look like or become. IMF advice followed its 2017 Safeguards Assessment, an international standard-setting exercise for IMFs. It is part of a much longer story in which global CBs have become global entities that follow the "rules and rhythm of the market" rather than policy influences (Bear 2015, 190-193).
Mongol MEP D. Damba-Ochir, who is cited in the tv message montsame.mn, explained that the changes to the Act will promote the Federal Reserve Act zogtvortoi taidal or instability in periods of economic turmoil (ediin tasgiin hyamral). Someone else I talked to said that the step to transferring the IPOTEC programme to the Ministry of Finance was taken to promote sustainable development.
Listening to these revisions at the end of 2017 gave me an occasion to think about other observations about the role and composition of Mongolia's aftermarket and the ethical nature of mortgage-supply. The mortgage system, operated by the Mongolian Mortgage Corporation (Mongolyn Ipotekiin Korporatsi) (MIK), provided an interconnected collateral mortgage system through resources spent by the Central Bank of Mongolia on eligible merchant institutions, enabling them to pay 8% interest rate opotek (mortgages).
is the only more accessible and cheaper way of financing residential construction available on the Mongolian residential property markets. Beyond the secundary mortgage markets, Mongolia's financialization and money-linked regimes include a growing number of circulation regimes, agreements, stock markets and bonds. Whilst the economies have come to a halt, the 8% interest rate mortgage has remained a kind of idealized mortgage, regardless of the varying nature both of the schemes that sustain it, or the volatile level of financing that various business entities are getting.
Such a way of satisfying this need was the collaboration between banking and building contractors in trying to keep the 8% mortgage on IPOTECH as an opt. Talking to a credit clerk at a local banking institution in Ulaanbaatar, they said to me how clients can get an 8% bullish housing credit through their banking institution if they buy an accommodation in a building constructed by a certain building company.
According to the following January 2017 announcement, this building firm obtained plots of land back then (including compensation for self-built houses or Baishin) and automobiles instead of a 30% down pay (urd'chilgaa tölbör): It promises a "quick decision" on housing finance. Given the contractor's part in encouraging such agreements, our understanding of how to design and redefine the Mongolian mortgage collateral markets is broadening.
In the 2015 and 2016 field work, contractors often engaged in car and material exchange to realize real estate development plans and buy housing. Idealizing the 8% mortgage does not only extend to the capacity of a broader group of non-elites to buy housing, but also to idealizing the system itself and what it can do for the local population.
A credit clerk said to me that the collateral mortgage markets "ediin zinc Zin Zin Zin zinc Zinc Zinc gold goldild oruulah" or "could put the business on the right course. Mongolia's mortgage system is quite new and, like other agreements and linkages that make up the mortgage markets, it is still evolving.
However, the proposal to make a financial contribution to the Ministry of Finance in September 2018 (IMF 2017, 47) will provide further confirmation of the financialization of this networks, which will no doubt lead to new relations, links and circulation. These will, like other types of financialization, further characterize and further extend this emerging but important web and lead to different ideological economies in Mongolia.
"Mongolian Mortgage Exchange Policy. "Disagreement over finances. "In the Oxford Handbook of the Society of Finance, 413-30. Narantuya, C. and Empson, R. (Forthcoming)'Networks and the negation of risks: transactions and individuals among Mongolian small and medium-sized enterprises' CAS.