Construction companies are nothappy that the Government wants to use the Apartment Financing Corporation toexecute its program to buy 4,000 apartments and then sell them to its ownemployees. This will certainly help builders but they worry that the wholeprocess will be marked by favoritism and corruption. Ya.Battseren, executivedirector of the National Construction Association, told media on Monday thatthe investment of MNT200 billion will be shared by the Ministries of Finance,Road, Transportation and City Development and the Metropolitan Governors’Office. 

Saying that companies in his Association had reservations about the Apartment Financing Corporation (AFC), he said all transactions should be done through commercial banks.  “The AFC will become a source of corruption, we are sure. We want the Government to give risk-free loans through banks,” he said. 

He supported the idea of setting up a “4,000-apartment market” which will allow people to choose their apartments and then take loans from banks. 

About 80 companies are involved in the program. They have offered to the Government “the cheapest price” for their apartments. Depending on quality of construction and location, the prices per sq. meter will vary from USD 483 to USD805. The loans will be given with the apartment as collateral so the repayment period may be fixed at 10 years.

Source:www.news.mn