Prime Minister S.Bayar, Minister for Finance S.Bayartsogt and President of Mongol Bank A.Batsukh said it during the press conference at the Government House yesterday. The Prime Minister said about that the Government initiated a draft law on “Securing the saving deposit at commercial banks” and proposed it to the parliament. This was initiated because the world financial crisis is deepening and people’s trust to the commercial banks is also decreasing. Abbout ten years ago duringnteh another financial crisis in Asia, many saving deposits were withdrawn and placed in abroad. Therefore, in order to secure financial stability, this law was made. The draft law was discussed during the parliamentary discussion at 17.00 yesterday.
As for today, commercial banks has 1,3 trillion MNT saving deposits. It is about a half of the state budget and the government gives guarantee to all types of savings. Prime Minister answered a question of “Are you sure that the Government of Mongolia is not receiveing risk?”:
PM S.Bayar: As for today 1.3 trillion MNT at commercial banks as the saving deposits. About half of the population are saving account holders and it is duty of the Mongolian State to protect their interest. Also internal active or loan package of commercial banks is 2.7 trillion MNT or twice as much as the saving deposit at commercial banks and it will be the main security. Insecure loan scale is only 3.5% in the loan, therefore, 96.5% of total lenders are paying their loan back to banks.
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