Mongolia Business and Mongolian Daily Business News

Mr. Ts.Myanganbayar, former President of Mongol Gazar LLC with nickname of “Gold Magnate”, is under investigation from January 5 2010. His main charges are frauds in submitting loan application to the recently bankrupted commercials banks, Anod and Zoos, using his “Mongol Gazar Holding” and other 60 subsidy companies.

His total debt to banks is over 20 billion MNT, excluding USD debts. According to the state officials and inspectors, he was the main contributor of bankrupting the State Bank, former Zoos Bank. Read the rest of this entry »

Last Friday of 2009, the Parliament passed a resolution on issuing MNT 100 billion bonds to State Bank, formerly known as Zoos Bank. However, 16 Parliamentarians have opposite positions. Let’s get their comments.

MP D.Ganhuyag: Let’s stop state responsibility for bank losses

Q: You have rejected the issuing of bonds to the State Bank. Do you think it is wrong to issue bonds?

MP D.Ganhuyag: These bonds are not for supporting State Bank but for taking responsibility for losses of the commercial bank for guarantying savings of the people by the state. Bond is a debt to be returned with interest rate. Also it is linked with the fact that the bank lends loans several times bigger than its equity to companies of their relatives or those with political influences. Actually the Mongol Bank is obliged to control financial rationals of commercial banks and guard people’s savings on behalf of the state. But the state, on behalf of commercial banks, taking obligations of insurance organizations on people’s savings, resulting growing number of frauds. Read the rest of this entry »

Prime Minister S.Bayar met with newly appointed president L.Purevdorj, B.Enkhhuyag, first vice president and D.Enkhjargal, vice president of Mongolia Bank. Mr. Prime Minister congratulated L.Purevdorj for his appointment. S.Bayar emphasized the importance of corporate work between the Government and Mongol Bank during the crisis period of the financial and banking sector as well as the global economic slowdown. Read the rest of this entry »

Last week, Mr A.Batsukh, the President of Mongol Bank announced his request to give up his position to the State Great Khural. The State Great Khural will discuss his request next week. Sources say that reason of his decision was the suspension in the banking sector of Mongolia due to the world economy recession and world financial crisis, especially the recent Anod Bank case.

Capital market law is so simple to buy when it is cheap and sell it when it is high. Therefore the capital market players are well aware of their risk and benefits. But the first ever funny resolution in the world’s capital market was made this December 9 2008 in Mongolia. This resolution said that the certain stock prices cannot fall. Many economists think that it is so intervening and breaching many people’s interest in the capital market. It also controls the channel of gaining more benefit and profit from the capital market. Mr. U.Ganzorig, the president of the Mongolian Financial Market Association, said that stock price changes not because of a state organizations or regulatory body, it is well depend on supply and demand. If the state body intervenes, then why we need free market economy. Read the rest of this entry »

This morning at 9:00 am Anod bank has opened its all branches for full service.  Mongol bank’s representatives have examined the processes of Anod bank for three days and they conclude that Anod bank can sustain normal services after small amount of injection to improve their financial situation. This is because there are 10 large amount of loans are payable to Anod bank from its lender companies and individuals. Read the rest of this entry »

During the week of 08-12 of December, 663.9 thousand shares of 32 SHCs were sold at MSE totaling 175.1 million MNT. In the primary market 67.4 thousand Remicon shares were sold totaling 6.7 million MNT and 601 Monfresh shares were sold totaling 60.1 thousand MNT.Index top – 20 was 5756.93 units and decreased by 372.9 units or 6.1% if compared to last week. Total market capitalization was set at 527.7 billion MNT.

Shares of 32 SHCs were traded and share price of 7 SHCs were increased, share price of 18 SHCs were decreased but share price 7 SHCs were unchanged. Shares which prices were dropped are; Bayangol hotel (by -17.1%), Gobi (by -15.8%), Darkhan (by -15.0%), Mongolia telecom (by -12.2), Baganuur (by -10.5%). Read the rest of this entry »

They were detained

Around 21.00, last Tuesday, detectives worked at Anod Bank and finished their work Thursday 17.00. Some sources say that team of detectives from Crime Department and State Investigation Authority,  sealed properties and registered all the capital of the bank.

Mr. N.Davaa, a member of the Board and a former election candidate for the State Great Khural, Mr.Gur-Aranz, the director of the board and also a former election candidate for the State Great Khural, and Mr. D.Enkhtur, Executive Director of Anod Bank, were detained and questioned as the suspects. Read the rest of this entry »

During the recent examination of the Bank of Mongolia on Anod Bank operation, based on the following malfunction the Bank of Mongolia took control of the management of Anod Bank and are as follows:

-    Failure appropriate management of Anod Bank
-    Relatively big amount of saving deposit was transferred to abroad
-    Failure of payback of loan, especially taken by the major shareholders of Anod Bank
-    Insecure loan granting is increased Read the rest of this entry »

Mongol Shuudan Bank and Zoos Bank totally shut their all types of loan. But Capital, Savings, Khaan, Xac and Capitron Banks are providing business, salary, pension, secured by savings deposit and leasing loans. These banks are not providing housing loan. Xac Bank temporarily stopped its housing loan until the next year. It is still unclear for other banks when to start giving loan. People who bought Trade and Development Bank accredited construction companies can get housing loan. Mongol Bank reduced its interest rate and it gives good standing position for the commercial banks. Read the rest of this entry »