Placing 220 billion MNT of Mongolia Development Fund at commercial banks is under strong criticism. About 61.9% of total voters of “Unuudur” daily newspaper readers said it was wrong decision. Let’s find out what is the position of lawmakers in this regard. They answered to the following two questions and are:
1. Do you support the operation of placing some fund of Mongolia Development Fund at commercial banks?
2. How to protect from the risk that may arise?MP Kh.Narankhuu: If this measure is not taken, the outcome will be much worse.
– The other countries of the world are taking similar measures. No decision works 100% in perfection. But if this measure is not taken, the outcome will be much worse.
– Commercial banks must be monitored after placing the fund. Mongolia heavily invested in the construction sector. But the construction works are not completed; therefore, so much labour and capital have lost its value. But in Russian Federation and other countries, the State buys the construction and gives away them to its people with mortgage. Mongolia can take such measure in the future.
MP D.Gankhuyag: The State can make better profit from the interest rate of commercial banks.
– I support this proposal with one main reason. This money is placed at Mongol Bank with 0.5% interest rate. If it was placed at commercial banks, its interest will be up to 9%. 120 billion MNT can bring about 10 billion MNT profit to the state.
– Of course there is a risk. ComBanks has 1.3 trillion MNT savings and 2.7 trillion MNT loan capital. The fund to be placed at combanks will help in decreasing loan interest rate.
MP Ts.Bayarsaikhan: Banks must be healthy if you want the economy to be healthy.
– I am one of the 11 MPs who initiated this law. Therefore, I support this money to be placed at combanks with certain conditions. People have misunderstanding about this measure; therefore, they didn’t support it. Banks must be healthy if you want the economy to be healthy.
– The State Great Khural initiated a draft law on securing the saving deposits at commercial banks. Banks money circulation must be improved and they need foreign and domestic source. But they shall not give long term loan with short term funding.