Mongolia Business and Mongolian Daily Business News

Two Vice Presidents of Mongolbank submitted their request of resignation. MPRP proposed Mr. Javkhlan.B and Democratic Party proposed Mr. Zoljargal.Kh, former Executive of MSE.

MPRP party group at SGK held meeting on the issue of Mongolbank. Mr. Purevdorj, President of Mongolbank, presented the issue for the discussion, because three presidents of Mongolbank are appointed by the State Great Khural.

Together with the issue, their replacements were also presented to the discussion. After three hours’ meeting of the party group, it didn’t made resolution. Because, some MPs ever raised a question of dismissing the President of Mongolbank, but it decided to postpone it until hearing of the President of Mongolbank’s report.

Mr. Ts.Myanganbayar, former President of Mongol Gazar LLC with nickname of “Gold Magnate”, is under investigation from January 5 2010. His main charges are frauds in submitting loan application to the recently bankrupted commercials banks, Anod and Zoos, using his “Mongol Gazar Holding” and other 60 subsidy companies.

His total debt to banks is over 20 billion MNT, excluding USD debts. According to the state officials and inspectors, he was the main contributor of bankrupting the State Bank, former Zoos Bank. Read the rest of this entry »

Last Friday of 2009, the Parliament passed a resolution on issuing MNT 100 billion bonds to State Bank, formerly known as Zoos Bank. However, 16 Parliamentarians have opposite positions. Let’s get their comments.

MP D.Ganhuyag: Let’s stop state responsibility for bank losses

Q: You have rejected the issuing of bonds to the State Bank. Do you think it is wrong to issue bonds?

MP D.Ganhuyag: These bonds are not for supporting State Bank but for taking responsibility for losses of the commercial bank for guarantying savings of the people by the state. Bond is a debt to be returned with interest rate. Also it is linked with the fact that the bank lends loans several times bigger than its equity to companies of their relatives or those with political influences. Actually the Mongol Bank is obliged to control financial rationals of commercial banks and guard people’s savings on behalf of the state. But the state, on behalf of commercial banks, taking obligations of insurance organizations on people’s savings, resulting growing number of frauds. Read the rest of this entry »