country highlights mongolia nhb-apuhf international conference 30/jan/ 2012 enkhbayar tsedendorj
TRANSCRIPT
Country Highlights Mongolia
NHB-APUHF
International conference 30/Jan/ 2012
Enkhbayar Tsedendorj
Content • Mongolian housing market growth –Mining town Housing development
• Mortgage market overview
• Potential development of Mortgage market
• Development of Secondary mortgage market and MIK’s function
• Conclusion
Housing Areas:
3
Ger area
Source: Mongolian 2010 Census
• Population 2,75 million, Total # Households-714,000
• 45% of them in Ger including 33% urban households
• Urban- 67%; Rural 33%
• Ger and Housing, %
• Urban: 33:67; Rural: 71:29
Mongolian housing market growth
• Over the 20000 units under construction in UB alone
• The volume of housing units per year will have to be at least 10,000 to meet demand, including the mining towns
Source: MRTCUD
Housing supply, by thousand sq m
“TSETSII” Mining Town Housing development in South Gobi, TsogtTsetsii soum, by Energy Resources Company
Area: 21 hectare1648 flats for mining workers Social and physical infrastructure facilities will be provided
Source:ER, MCS property
Current Housing Development
Ulaanbaatar city
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Mongolian Ger
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The strong growth of banks begun in 2004 has resumed
Source: BOM and TDB
Mongolia’s strong GDP growth will drive strong loan growth
Source: IMF and TDB
Mortgage lending in Mongolia will grow dramatically
The sources are BoM, IMF, MIK TDB
Providing Home ownership to more and more Mongolians
Source: MIK and TDB
Mongolian mortgage market overview(1)
Market indicators 2005 2006 2007 2008 2009 2010 2011Mortgage market debt outstanding (billion MNT) 30,8 74,3 164,6 218,0 226,0 333,7 656,5
Mortgage market share of Systemic Loan market , % 2.3% 3.3% 8.0% 8.3% 8.6% 10.7% 11.64%
Total Debt Outstanding Per Borrowers (million MNT) 6.4 8.3
10.0 13.2 13.6 16.9 24.8
Numbers of Total Borrowers, thousand 4,7 9,0 16,4 16,5 16,6 19,7 26,5
Market I.R /Ann , %/ 14.7% 17.8% 16.0% 18.7% 17.7% 15.7% 16.9%
* Source: Monetary Policy and Research Department, Bank of Mongolia
NPL %Mortgage loans-0,45%MIK portfolio-0.0%
Mortgage Standard: •LTV <70%•DTI>45%
Mongolian mortgage market overview(2)
* Source: Monetary Policy and Research Department, Bank of Mongolia
Housing Price Index , by 6 districts of the Capital city
* Source: Bulletin of National Statistic office**Note: Statistical substitutional methodology has been used on some apartment price data.
MONGOLIAN MORTGAGE CORPORATION
Established 06.09.2006
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Why we established MIK– Increase the affordability of the housing loan
– Stable structure for long term financing
– Liquidity facility
– Increase in housing mortgage market
– Need for capital market development
Mission statement• Promotion and development of primary and
secondary mortgage markets • By raising medium to long term funds on domestic
and foreign capital market • Through a series of capital market tools to create and
ensure smooth functioning of long-term financing system
• To promote affordable home ownership and urban development for Mongolia’s people.
• Purchased 10 Mortgage pools • MIK issued Covered Mortgage Bond in 2009
-9,7 Bln MNT, 2, 3.5, 5 years, 14-14.5% • Got an approval from the Financial Regulatory Commission to issue
25 bln MNT bond ;• Mortgage Legal and Regulatory framework
– Mortgage standardization and Documentation - IFC and KfW, EBRD – Mortgage law July 2009– Asset based security law April 2010– Shelf registration , OTC procedure
• Listed as a repo financing instrument under Central Bank of Mongolia
• Capital increase, offering equity investment to potential investors
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МIK OPERATION
Cooperation and recent development
• Cooperation with IFC, KfW, USAID, APUHF, EBRD
– IFC: 2 Small TA-Mortgage toolkit adaptation and Housing micro finance
– KfW: Loan and TA project through Government FSM
– USAID: Legal framework and Mortgage bond Guarantee 50%
–Wharton school International HFP, Hofinet data :
– CAGAMAS
Conclusion• Considerable housing needs to be built in Mongolia• Mongolian mortgage market is developing rapidly• Secondary market development will be essential • Foreign investors in covered bonds or mortgage backed
securities will be needed• MIK, with strong local and international support, is
poised to create quality investment instruments• Investors in the housing market, as well as the
secondary mortgage market are welcome
THANK YOU
Mongolian Mortgage Corporation LLC /MIK/
MIK Building , United Nations street-38Chingeltei district-4, 15160Ulaabaatar, Mongolia
www.mik.mn, [email protected] Tel: (976) 11-328267Fax (976) 11-313338 25