Developing appropriate housing finance system in Mongolia. Comparative analysis with countries' practices.

Naidandorj Anu (2018) Developing appropriate housing finance system in Mongolia. Comparative analysis with countries' practices. Külkereskedelmi Kar.

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Absztrakt (kivonat)

Since the transition of Mongolia from centralized to a market economy in 1990, the migration flow from rural to urban areas seeking better education, healthcare, job opportunities, and improved livelihood has intensified. According to the National Statistics Office’s data, the population of the capital city of Ulaanbaatar increased by 264% during 1990-2017. As most of the migrants cannot afford expensive apartments in the city, they settle down in “ger” areas, where the adequate infrastructure such as access to clean water, proper heating system, and basic sanitation system do not exist. These areas, which account for more than half of the Ulaanbaatar’s population, appear to be the primary cause of environmental pollution that leads to many negative socio-economic outcomes and externalities associated with them. Although the government of Mongolia has implemented several housing policies and introduced subsidized mortgage loans, the result didn’t show positive outcomes. Thus, there is a crucial need for the government of Mongolia to conduct correct and complete research regarding low-income families and their necessities of affordable housing and must consider requiring expenditure such as mortgage subsidies for implementation adequate housing policy. Therefore, this research aims to study the issues and challenges of the public housing system in Mongolia, advantages and disadvantages of different systems, and to prepare proposals to create appropriate housing finance system targeting low-income households based on countries’ experiences that successfully implemented different housing financing programs. The study includes (i) mortgage lending systems, their development, advantages, and disadvantages, (ii) mortgage types, (iii) housing finance infrastructure, including securitization, insurance, subsidies, microfinance and rental housing market experience across the countries. Furthermore, the mortgage and housing financing system of Mongolia was compared with other countries experiences. In order to satisfy the objectives of this research, both qualitative and quantitative methods were used. In the framework of qualitative method, the research adopts literature analysis using various research papers and related reports, scientific publishing in international and domestic journals, dissertations of scholars and researchers, and reports and handbooks of international institutions such as World Bank, Asian Development Bank, as well as Government institutions such as MIK LLC (Mongolian Mortgage Corporation), Central Bank of Mongolia etc. In the framework of quantitative analysis, the primary data was used from various official pages of the government and international organizations’ websites such as National Statistical Office of Mongolia, Bank of Mongolia, The Housing Finance Information Network etc. Despite high level of urbanization, Mongolia’s housing affordability level is much lower, and monthly repayment of mortgage loan to income ratio is very high compared to other countries. Singapore and Japan are examples of the countries that successfully implemented appropriate housing policies. For instance, Singapore introduces one of the most common forms of sustainable mortgage system that is called Housing Provident Fund. The HPF usually collect mandatory savings from worker’s salaries and pensions with the purpose of meeting housing needs. The HPF collects a percentage of the salary set by the law into a special fund, and forms the fund's assets and manages the fund. After implementation of the system Singapore became of the few countries in the world to achieve almost full home ownership status. Based on the best practice of many countries’ experiences, this paper proposes several ways to develop sustainable housing financing policy. In particular, the government should create conditions for commercial banks to fund mortgage loan funding; to target low-income groups through special funds, enable secondary market opportunities for mortgage loans by securitizing the existing mortgage loans. Furthermore, the international best practices suggest that developing efficient housing policy requires several phases to implement such as introducing rental housing market and mortgage insurance. The government’s intervention is vital in terms of mortgage interest subsidies for the lender. Also, by introducing the mortgage insurance, it is possible to reduce down payment and households will have greater chance to obtain to the mortgage loan.

Magyar cím

A megfelelő lakásfinanszírozási rendszer fejlesztése Mongóliában. Összehasonlító elemzés az országok gyakorlatával.

Angol cím

Developing appropriate housing finance system in Mongolia. Comparative analysis with countries' practices.

Intézmény

Budapesti Gazdasági Egyetem

Kar

Külkereskedelmi Kar

Tanszék

Nemzetközi Gazdaságtan Tanszék

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Nemzetközi Gazdaság és Gazdálkodás

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	Lakhatás, Urbanizáció, Lakásfinanszírozás, Banki kölcsön, Mongólia
Felhasználói azonosító szám (ID):	Szabó Zoltán
Rekord készítés dátuma:	2018. Máj. 07. 09:26
Utolsó módosítás:	2020. Ápr. 02. 05:25

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