Daily Business News Mongolia

Establishment of “Development Bank” was included in the main principle

The main principle to develop economy and society in year 2009 was discussed by the State Great Khural. The draft of the main principle to develop economy and society of Mongolia in year 2009 was presented by the Minister for Finance S.Bayartsogt. When developing the draft, it was based on the mid term plan and evaluation and conclusion of economy and society of this year. Minister briefly introduced the background of this year’s development in economy and problems. He also continued that Mongolian economy is the highest in Asia with its inflation rate. But the urgent reaction of Government such as Atar III campaign, compensation on price difference, establish state reserve, soft agreement on wheat and grain import, was essential to harness soaring inflation. (more…)

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“MIBG” company received its seat at MSE

Council Meeting of MSE Director was held and discusses the issue of “MIBG” and “Gauli” broker dealer companies’ request. They received their license from the Financial Regulatory Committee, but MSE grants seat to “MIBG” and suspended “Gauli”. Also shareholders’ meeting of “Dornod Sito” SHC made request from MSE to unlist it from MSE. According to its request, 166 654 shares with face value of 100 MNT were unlisted from MSE registration, based on the resolution of the shareholders meeting and director of MSE. Since the beginning of 2008, 12 SHCs were unlisted and 6 SHCs were listed at MSE. As for now, 378 SHCs were listed in MSE.

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Mongol Bank decides the faith of the construction industry of Mongolia

Mongol Bank pursues strict monetary policy to harness the inflation. But it is harming some businesses and private sector. It increased its principal interest rate twice since the beginning of 2008 and it was the warning for the commercial banks to limit or stop their loan granting. Housing loan was limited and apartment and housing price fell by 30-40%. Also construction companies have no fund to complete their projects. Commercial banks stopped their loan, even they wish to they have limited source. (more…)

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Slight increase in Anod Bank share

Yesterday, 189.8 thousand shares of 10 SHCs were traded at MSE, totaling trade of 28.4 million MNT.
At the primary market, 110.1 thousand Remicon shares and 4.2 thousand Monfresh shares were sold. At the secondary market, 56.5 thousand Khukh Gan share were sold, making it as the most actively traded share of this day. In comparison with the previous day’s trade, Anod Bank share was increased by 10.2% and Mongolia Telecom by 2.94% respectively. But Khukh Gan share was decreased by 6.54% and Genco Tour Bureau share by 4.76% respectively.

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Prime Minister S.Bayar: Government will show financial support to commercial banks

Q: How the Democratic Party Group evaluated the Action Plan of the Government?

S.Bayar: Basically, MPs of DemParty ask about to bring more down to earth action plan. The world economy crisis cut down our election promises. So we should discuss about what the Government can provide and what can’t. Moreover, they demanded more clear policy for the people of Mongolia. Social welfare policy was set forth primarily, therefore, DemParty MPs commented that it can be realistic when the policy on industrialization is real. (more…)

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Copper Prices Surge in New York on Demand for Inflation Hedge

By Millie Munshi

Nov. 4 (Bloomberg) — Copper prices jumped 6.4 percent, rising for a second day, as a weaker dollar and higher energy prices renewed demand for commodities as a hedge against inflation.

The dollar fell the most against the euro since the 15- nation currency’s debut in 1999 and crude oil rebounded from a one-week low, gaining as much as 12.3 percent. Copper rallied 8.4 percent last week, the biggest advance since May 2006. The Standard & Poor’s GSCI Index of 24 commodities was up as much as 9.3 percent today, the biggest gain since at least 1970. (more…)

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Bank minimum reserve was set at high level in order to save banks from bankruptcy

Economists said that the world economy crisis would affect the Mongolian economy in minor extent. But this crisis knocks the door of our economy through the stock price fall at the Mongolian Stock Exchange. Mongol Bank informed that commercial banks’ saving hadn’t decreased. Banks’ minimum reserve is increased since 1998 and it reached 8 billion MNT in April 2006. (more…)

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A.Batsukh: False rumors about banks are really harmful

At the regular session on Thursday the Parliament discussed the ratification of the draft resolution on State Monetary Policy Guidelines of the year 2009.
As reported by the Governor A.Batsukh, since 2007 the Mongol bank has been responsible for formulating the State Monetary Policy Guidelines covering three years of period, clarifying the SMP each year and maintaining future perspectives. (more…)

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O.Chuluunbat: Won’t buy shares of commercial banks.

Q: Why the commercial banks of Mongolia stopped their loan?
O.Chuluunbat: World countries report their economy condition. Otherwise, banking sector is very vulnerable. More precisely, it based on the main factors and trusts of people and is affected directly and instantly by the international economy condition. If commercial banks undergo any difficulties, the government must take a measure. Also the Parliament and the Government start taking about certain measures that are effective for the current situation. But it didn’t consider of buying shares of commercial banks like in USA. It is the risk of commercial banks.

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O.Chuluunbat: There is nothing to fear

We got details from O.Chuluunbat, Parliament member on information related to the draft resolution on State Monetary Policy Guidelines of the year 2009 in compliance with 10.2 of the Article 10 of the Mongol bank law of Mongolia submitted to the Parliament on Oct. 29. (more…)

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