-By today, our corporation has learnt the loan documents of 2040 state employees. 1100 state employees already got the apartments. We conclude that project is being implemented successfully and it reached 50% of the total project. Now the loan documents of about 200 state employees will be learnt. We have no right to increase or decrease the number of state employees as the project says 4.000 apartments only. We met many difficulties in the start of the project implementation and so we have solved the apartment loans only for 50 state employees in 1st quarter. During that time two factors influenced negatively in the project implementation as the project say that the price per square meter was 650.000 MNT and should only be financed to the apartments that were built by the loan of commercial banks. So we drafted the revised version and it was delivered to Government. In accordance with revised version, the price per square meter became flexible. 40 million MNT is given as the loan to employees and other percent should be paid by the state employees. The option widened during that time, and since 15 March till today about 2000 loan documents were learnt and 500 people recived the loan.
-There is quota in each sector. The Minister of each sector sets up the quota. Are there cases to be refused due to low monthly salary for the selected applications? If they are refused, will the quota be back to the organization?
-If they cannot meet the criteria and requirements, then the quota is given back to that organization. We have no right to give the quota to other organization or people. But refused cases are very low. We are interested in granting the loan. If the application’s monthly salary is low, we register the co-lenders for positive influences. .
-Is the co-lender should be the family member? Can the co-lender be the friend or relative?
-Of course, family members are considered as the co-lender. But this is not the strong requirements. We offer the soft conditions not depending on the commercial conditions in order to deliver the loan to the right people. State employees who got the loan can approve it.
-Your organization grants the loan directly by not using the commercial banks in the middle. Isn’t it riskful?
Our organization grants the loan and it does not add the interests and also provides wit opportunity for fast loan. We organize meetings twice in a week for solving the loan documents. Difficulties in the financial source cannot be occurred as the decision for each loan is delivered to Governemnt for bonds. -Of course the project gives the enough investment in the construction sector.
-What about the choice of people?
-Yes. We have invested about 30 billion MNT to the construction sector already. Soon the bond of 30 billion will be done. There is information that people purchased apartments from 95 construction companies. Choice is done by the state employees. But some construction companies complain that our organization does not consider those companies in our project. In fact, we have no participation in the chpice of the state employees. Choice of employees depends on the price and quality of the construction. As I noticed, people make the choice of construction that price is 700.000-1.100.000 per square emter. We can see that it is not possible for state employees to select the construction with price more than this. The money of the state employees can not be more than this size. They make choices depending and adjusting on their monthly income.
-How the project will be continued in the future? Will it be increased to 8000-10000 in coming years?
The number of state employees is increased to 140.000 but only 4.000 of them can ourchase the apartments in one year.
-The project result will be introduced to the Government by the end of this year. 4000 people can get the apartment in one year and this is not dissatisfying number. Here I can say some examples. About 10 years are passed since our country started to grant the mortrage loan. About 360 billion MNT was granted as the loan by 15 commercial banks during last 10 years. But “Apartments-4000” projects’s finance can reach 150-160 billion MNT. So the number is not low. It is very big project by its market influences and investment size in the sector.
We have already solved the loan documents for 2.000 state employees. So I think the project will be continued. -It is said that it is possible to finance the people with low and medium income. For certain, many people wait for the good news?
-In coming years when the conomics can be restored successfully, we can see that it is possible to finance the people with low and medium income. When the bank and financial conditions are higher, it is right to implement projects by Governemnt. In our country, there were no loans with annual interest of 8% and up to 20 years. So it will be right to continue the project involving many other people. -It is said that state employees mostly select one-roomed apartment.
Why they cannot select 2-3 roomed apartments?
-Of course many state employees select 1-2 roomed apartments. Some people who are possible to pay the difference select 3-4 roomed apartments.
-In order to apply for the loan, will the work years be considered?
-Due to regulation, state employee should work for more than 3 years in order to apply for the loan. There are no other requirements. We do not know about the organizational regulations and how they select the employees. We grant the loan to the state employees whose loan documents received to us. .
-About people who received the loan, how much they will pay monthly?
-How much control will be done on loan repayment. It is easy to grant the loan but difficult to get back.
-Our organization will control the loan repayment. By today the loan repayment is going in 100 %. We have signed contracts with the inviduals but also with the organziation where the applicant works. Loan size is different for many people, so monthly payment is different too. If applicant received 40 million MNT, then monthly payment is around 300.000, if loan is 30 million, then about 200.000 MNT should be paid monthly. Life is rich and we cannot say what will happen in the future. The laon gurantee is the apartment.
-Loan is up to 20 years. Of course there are state employees who are gping to be retired soon. What about these people?
-There is no right not to grant the loan. So co-lenders should be registered together. -There are complains on thin walls of the apartments, low square meter and issues related to plumbing.
Did you receive such complains?
-No, we cannot receive such complains. Choice is done by employees, so we cannot solve these issues.
-How the quota was set? For example, many employees work in the medical and educational sectors. Are the left sectors?
-There are 140.000 state employees in our country. 60
.000 of them are teachers. So educational sector received the quota for 1600 people. Quota was set in acoordance with features of the sector.
-What about employees in the local areas? There are no apartments in the provinces? In order to purchase the apartment, do they come to the city? -2284 quota is in Ulaanbaatar city and 1561 is for local area. People who live in the provinces purchase apartments in the city or province centers. In order to purchase the apartment, they need to sign in the loan agreement. So there is the necessity to come to Ulaanbaatar city for thei signature. Our economists reached some provinces. So there is no big difficulty in this issue.
-What about the experience on the mortage loan of other countries?
-As features of each country are different, so implemented works are also different. So there is no need to copy from other countries.
-Mongolians have bad habit to solve the issues through relatives or friends. Are there many people who applied to you? Or wishes to assist them in loans? -Of course there are wishes and requests from people. “Apartment-4000” was approved by the Government. We have no right to change or make amendments on the project. It should be done by Government only. Also the names for 4000 apartments already clear. So there are no possibilities to assist other people. .
-Environment and ecological issues are burning questions for us. But ger districts widen day to day. What we should consider I norder to finance those people?
-We are financing the people who live in 7th district. This is our experimental work. Today people want to change the land by the apartments. If there are no apartments, then cash is given. But personally I do not think the selling the land by cash is the right way. Because people who get the cash buy another land and build another new house there. Still they have kindergarten, transportation and infrastructure issues there. So it is important to pay attention on prepare the apartments for these people. Some families who lived in 7th district moved close to airport.
-How many families should move in order to build 7th district? How many of them moved already? 7th district will be built with assistance of China. About 1000 families should be moved. By today it is necessary that 20 families move and there will be opportunities to build the apartment for 300 families. When the apartment will be ready, next 300 families can be moved. Of course it is easy to talk but is difficult work.
-Can the employees of apartment financing corporation get the loan? I remember that people were saying that young man was appointed to this department?
-Or organization is owned by state and local organization. So our employees cannot purchase the apartment from this program. Our employees also want to purchase apartments. We hope we can give the soft loan to our employees when our work will be widened in the future. By today none of our employees received the loan.
-Beside “Apartment 4000”, your organization was granting the loan for apartments with annual fee of 11%. Is the loan still available? -It was the loan in “40.000 apartments” project. As the finance is stopped, the loan is not available. About 300 employees received the loan up to 10 years. .
-There was much gossip in the start of the project. Were there any difficulties for you as the young man? -I faced enough difficulties. But I think I should work well to show to people. I am glad that I showed already to people that this project can be implemented successfully .
