Team of PMs lead by Mr. Ts.Sedvaanchig who are checking the processes of Financial Regulatory committee have visited the Mongolian Stock exchange. They are analyzing the situation of current market to look for a way to stay away from the current world’s recession. Mongolia’s 4th largest commercial bank Anod’s shares were suspended by the MSE due to failure of payments by Anod bank. Anod bank’s 19 billion MNT worth of shares at the stock market of shareholders are at risk.
Researchers of the stock market have studied 9 stock markets of USA, England, Russia and five countries in Asia. They can confirm that Mongolian Stock exchange market is hit hugely by the worldwide recession as the share price of the index top – 20 was decreased by 38% just 2% less from the stock markets mentioned above. Research also reveals that our stock market is directly related to the overseas countries.
Explanation for the price drop of shares:
The share price drop is hugely related to the Foreign invested businesses, explains R.Sodkhuu, deputy minister of the stock exchange. They have less incentive to trade and as the worldwide financial crisis are increasing. Domestic firms are also on tight money policy and this had also affected the price drop of certain Stock Holding Companies shares. Mongolian Stock exchange have lost 441.4 million MNT of revenue says R.Sodkhuu. He also pleads that there may have been wrong policy at the stock exchange which may have affected the price drop of shares and he will investigate further into this matter.
Q – Anod bank’s deposit holders were once at risk but their deposit was secured by the government but there is a question of who will save the 19 billion MNT of the Anod bank’s shareholders?
MP N.Ganbyamba – The aim of our investigation is to find a solution for this matter and I believe shareholders should be treated equally as the deposit holders.
Q – R.Sodkhuu, Director of MSE has asked for subsidies from the government to cover from some of the losses that they have experienced. Is this possible?
MP N.Ganbyamba – At the moment I can’t talk about this as this matter will be discussed in the State Great Khural. After the investigation we will report to the State Great Khural and give our point of view.
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