Tree of debt

Oct 8 • Featured, Opinion, Politics, State Affairs • 3595 Views • 1 Comment on Tree of debt

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Minister of Finance Ch.Ulaan announced that the tax prepayment + bond USD250 million and interest USD27 million from OT LLC will be included in the 2014 budget. Mongolians remember the government officials who accepted these debts and explained about the generosity of Rio Tinto back in 2009. Also, we know that these debts were distributed along with the USD350 million pre-payment form Chalco to the public – each receiving USD16 dollars every month for nearly 2 years. The government officials at the time, didn’t bother to mention that these are debts. Probably, they believed that OT and TT will boom and we would become Asian Qatar by now.

We also have to remember that the OT related government officials’ annual revenue have been growing rapidly since then. For example, former OT-Agreement era PM S.Bayar’s income increased 20 fold from MNT5.3 million to MNT109 MNT in 2009. His savings rose from MNT94 to MNT156 million. Former Finance Minister S.Bayartsogt, who has also been accused of having offshore company that has an account in Switzerland, had his income risen from MNT249 million to MNT665 million. The family revenue decreased but his income was increasing. It is odd to find out that their income was increasing when the whole country or world was in crisis and recession.

Mongolians dreamt of becoming Shahs of steppes after founding OT and TT. Be it mismanagement of the government, be it stupidity of the officials. Nonetheless, we are following the path of becoming debt ridden resource-rich country that has planted a debt tree.

Source: news.mn

 

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One Response to Tree of debt

  1. Some speak, Some work says:

    Some are getting nervous (for the wrong reasons) about debts piling up in Mongolia, while GOM has obvious problems sharing equity with foreigners, they have to acknowledge the local savings pool is ridiculously tiny in comparison to the massive needs of all kind in Mongolia.

    So where should capital be coming from?

    While politics did not make their job very easy, to say the least, some at MSE (and FRC) have been working hard behind the curtain to provide the foundations of a stock market that could help GOM later to list state-owned-enterprises in UB but could also help NOW local corporations to raise equity from MSE…if politicians were mindful about the negative perceptions created overseas.

    Here is an excellent online tour of what MSE has achieved and Mongolians can be proud of.
    http://www.mse.mn/uploads/files/File/E-Newsletter%2018th%20Eng.pdf

    May be it is time for politicians to really support MSE, replace good words with substance and discuss with MSE how they can move to the next level, for the sake of all in Mongolia!!

    May be time to prove to mines listed overseas , that often have licenses in the Mongolian twilight zone, that Mongolia does mean business, can remedy to this license problem and would welcome them for dual listing on MSE as the Securities Markets Law will authorize!!

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