DRAFT AMENDMENT TO LAW ON SOCIAL INSURANCE TO BE SUBMITTED

Ulaanbaatar /MONTSAME/ At its meeting on Monday, the cabinet backed a draft amendment to the law on social insurance. It will be submitted to parliament, reflecting proposals from some Ministers. The draft aims to regulate the relations in providing the population with houses and implementing the policy on promoting the construction sector by creating new sources for housing without awaiting the repayment of loans and other financial instruments, and by reducing the credit interest of new mortgage loans. Developing the mortgage loan system is a vital objective for any country to provide their population with houses and to improve the living conditions. As for Mongolia, it is difficult to boost the mortgage loan system because of lack of financial source within the national economy and non-balanced ratio of demand and supply. Developed nations have tackled it by introducing a financial instrument called a capital guaranteed stock.