MP O.Chuluunbat shares his point of views regarding the current economy and political development.
Q: People were scared of recession. But now they already accustomed with this term. Has “dark cloud” of thunderstorm passed?
MP O.Chuluunbat: Not yet passed. Major economies in the world are taking measures to tackle the recession. G20 meeting will surely take effect in actions against crisis. US economy has some optimistic statistics, Japan economy contract is decelerating.
Q: How about the Mongolian economy?
MP O.Chuluunbat: We are suffering crisis. Government adopted action plan against crisis. I think it is not bad plan, even it was bit late. But there are some minuses too. Construction companies are asking money instead of building, mining season has started, but those mining companies are seeking fund in Ulaanbaatar. Also budget income has contracted almost in same amount and tax income has substantially decreased. But is flame of hope at the end of the tunnel. PM S.Bayar agreed on some aids and funding. He will get some from China too. The Government adopted 7-8 major projects in the Mongolian economy.
Q: Mining and construction works are not started yet. Do they have fund for operation?
MP O.Chuluunbat: Commercial banks have no fund to spare them. Therefore, Government and Central Bank have capacity to spare. It wrong that Government provide money to commercial banks as loan. Instead, Central Bank should buy good actives of commercial banks. Banks do whatever they like with that money.
Q: Currency rate will be stable in the future?
MP O.Chuluunbat: I think it will. Mongolbank withdraw MNT, so MNT rate will not decrease. Mongolbank should have done it earlier.
Q: Is it correct if Mongolia gets fund from afraid with high rate?
MP O.Chuluunbat: Do we need money? Yes do. So if someone can spare then he or she should get it. About rate, it is with even lower rate dear.
Q: What is your position about 1,5 million MNT when the economy has contracted so much? State budget income has contracted also.
MP O.Chuluunbat: This money can be provided with any type, treatment, insurance, tuition. If we calculate that 1,5 million per citizen, it will be 4,5 billion MNT. If we will be more cooperative and wiser, we can develop mining and infrastructure projects and raise fund for us. We should have resolved the issue of “two heads”.
Q: The draft shall be signed?
MP O.Chuluunbat: I believe that any version good for Mongolia. We should not demand majority. Lets take example on Erdenet, over 20 years it worked as private company. State owned 51% at Erdenet, but it didn’t take any dividend. But it brought so much benefit and income to Mongolia. It provided many workplaces. It used so much electricity, transportation and water from Mongolia. If the state ownership is high, its dividend do not come to people, it used in a wrong way.
Q: Presidential election campaign is started. Who do you prefer.
MP O.Chuluunbat: According to the Constitution of Mongolia, President is security to provide political and legislative stability. I hope he or she should meet with this criteria.
Interviewed by J.Nyamsuren, (www.news.mn)
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Amarsanaa,
I still do not have the answer to a question I have regarding the approval of the Oyu Tolgoi mining agreement.
Question: Can a minority party stop the signing of this agreement, or the passage of the draft law?
I have been under the impression that a majority is all that was needed, not consensus by 100% of MPs.
Could you clarify this for me?
Thanks,
The Mongolian economy needs this agreement in order to improve the economy, on many levels.
“B”