Q: Two years ago, the Chinese Government offered that it can provide three billion US$ commercial loan. But MPs quite strongly criticize Minister for Finance for losing time and lagging behind, what is your opinion?
MP O.Chuluunbat: The Chinese Government made statement that it can provide the loan at the very beginning of the crisis. Mongolia just lost it. Money was in need for Mongolia during these two years. All sectors of the Mongolian economy lost their revenue during this period. Plus, unfortunately, Mongolbank collected its money from the market. Now we are talking about financing our commercial banks and establishing Development Bank. I can’t understand the Minister for Finance who doesn’t understand such a simple logic and talking about financing commercial banks and establishing the Development Bank. I can’t tell that why his action and decision are such contradictory.
Q: The Bank is planned for getting the loan?
MP O.Chuluunbat: No! 3 billion US$ will not arrive because of the Development Bank. If the bank is established, it shall operate according to many regulations and restrictions. But the bank with 16 billion MNT, can fund only 3 million US$ project. It is an international standard. If the loan is distributed via commercial banks, there are several banks that can easily meet with the requirement, such as Khan Bank, TDB and Golomt.
Well, if the bank is established, no foreign banks will cooperate with the bank, without sufficient enough history and profile. Even, China Development Bank will not cooperate. The loan delivery will be delayed.
Q: What kind of exit can be for this situation?
MP O.Chuluunbat: Instead of establishing the Development Bank, the Government can establish its Investment Fund or Corporation. There are many similar experiences in the world. The closest one is CIC (China Investment Corp.) But the Minister for Finance always picks wrong call. Prime Minister initiates many works, such as “Smokeless Ulaanbaatar”, “100 thousand households”. But such big projects can’t be implemented with 3 million US$ of the Development Bank.