Proper registration of property rights essential

Only 360,000-370,000 of at least a million pieces of property in Mongolia are officially registered, of which more that 190,000 are in Ulaanbaatar alone. This unconcern for recording titles may be related to the Mongolian nomadic life style, as also to the 70 years of socialism when the concept of private ownership was not favored. Whatever the reason, participants at a roundtable discussion on property rights and economic growth in Mongolia on September 16, hosted by The Economic Journalism Club, agreed that the lack of a unified registration procedure for property ownership severely constrains growth and individuals’ access to finance in the country.
The panelists included Dr. Jargalsaikhan, CEO of Xac Leasing and columnist; Dr. Demir Yener, USAID/EPRC senior finance and corporate governance advisor,  Ms. Marianna Posfai, Capacity Leader, and Mr. T. Enkhtamir, lawyer of the MCA property rights registration project. Journalists from 11 daily newspapers and magazines attended. Discussions covered the need for registered property in accessing finance, the challenges in registering property through two separate registries, and the need for legal reform.
Mongolians have yet to realize the value of land and its potential worth as the economy booms. Also, the legal framework for proper registration continues to be rickety. Mr. Enkhtamir said only Ulaanbaatar City Bank accepts land as mortgage when giving a loan. Public realization must grow that the particular value of land lies in its permanence and that no new land will be created. Thus what appears to be worth little now could become a prime piece of real estate in the years to come.
Source: USAID/EPRC, English.News.mn
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