Ulaanbaatar
Policies Discussed on Supporting Youth Development and Housing Young Families
Politics
Ulaanbaatar, November 27, 2024 /MONTSAME/. During its regular session on November 27, 2024, the Cabinet made the following decisions:
The Government of Mongolia has declared 2025 as the "Year to Support the Youth." Within this framework, Minister of Culture, Sports, Tourism, and Youth Nomin Chinbat presented a medium-term strategy for youth development, while Minister of Family, Labor, and Social Protection Enkh-Amgalan Luvsantseren outlined policies and strategies to provide housing for young families.
Minister Enkh-Amgalan Luvsantseren stated, "The Affordable Housing Finance Program has been in effect since 2013. However, during this period, the program significantly stimulated demand without increasing supply, leading to a rise in housing prices. It failed to target the intended demographic, primarily benefiting high-income individuals who could afford the down payments. Currently, there is a waiting list of over two years for loan applications, and clearing this backlog would take 40-55 months. Accelerating the process would outpace the supply of new construction, resulting in further price hikes and disproportionately benefiting sellers."
To address these challenges, several measures were discussed, including financing 50 percent of the down payment through a Credit Guarantee Fund and incentivizing young people to save for down payments by creating a dedicated Down Payment Savings Account. This account would exclusively help young families accumulate funds for housing down payments.
Additionally, Minister Nomin Chinbat was tasked with presenting the "Youth Development Strategic Plan for 2025-2029" at the next Cabinet meeting for approval.
