In 2025, the Accumulation Fund Will Collect 507.1 Billion MNT and Increase Mortgage Loan Funding

The Resident Representative of the World Bank, Taehyun Lee, met with Mongolian officials to discuss potential collaboration in the areas of the National Wealth Fund, Housing, and Pension System reforms.

 

The Mongolian government has established a National Housing Authority to increase funding for mortgage loans through the Savings Fund. Discussions and meetings focus on aligning policies and strategies to enhance access to affordable housing.

 

For 2024, the government has allocated 499.5 billion MNT to the Savings Fund. The Bank of Mongolia will distribute this fund to nine commercial banks, which will then provide mortgage loans to citizens. As a result, 5,291 people have been able to access mortgage loans.

 

Looking ahead to 2025, the government plans to increase this funding to 507.1 billion MNT.

 

Each year, about 20,000 citizens receive housing loans, with one-third benefiting from subsidized loans, another third receiving commercial loans, and the remaining applicants unable to secure the loan they need. The government is working to improve the availability of mortgage loans and develop a long-term, affordable housing system that aligns with citizens’ and households’ income levels.

 

The World Bank is also collaborating with Mongolia on programs for the redevelopment of ger areas and urban housing development.

 

Furthermore, Mongolia has designed a pension system model consisting of three layers: a basic pension funded by the state budget, a pension based on contributions to the Social Insurance Fund, and a private supplementary pension system. A draft bill on private supplementary pensions is currently being developed by the Ministry and will be presented to the Mongolian Parliament during the fall session.

 

The government is also working closely with the World Bank on pension reforms, including actuarial assessments, and is considering consulting an actuarial firm for preliminary reports.