Daily Business News Mongolia

Mongolian Tugrug must be used

The Bank of Mongolia explains that the current soaring of US$ rate against MNT was because of few people who are for short run benefit. MNT is the valid currency in the Mongolian territory. Breaching the law creates artificial demand in the market. RMB and US$ in the black market is less than 0.1% of the market reserve. Bank of Mongolia informed that inspectors and officials are checking currency exchanges whether they are officially approved by the Financial Regulatory Committee.

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The impact was harsh due to the late response from Mongolia

MP O.Chuluunbat has his views in the recent development of crisis and economy recession.

Q: Some said that the world crisis has nothing to deal with Mongolia. But it affects our daily life.
MP O.Chuluunbat: World economy recession and crisis is taking effect on us. Its impact is harsh because our reaction was so late. Money loan was halted since April and May and it decreased affected in the business and economy activities by 30-40% decrease. Actually, the business activity in Mongolia i carried out advances based on the loan and credit. If one company gets loan it doesn’t mean that its director or owner uses it, but it is used in business activities that can help in living of many individuals and companies.
Almost every company has network of payable and receivables from each other. (more…)

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Mongolia Development Fund money is to be placed at Combanks.

The State Great Khural approved the amendment in the law of Mongolia Development Fund in its afternoon session of last Friday. Therefore, 455,1 billion MNT of Mongolia Development Fund will be placed at Combanks.

Combanks can get money from the Mongolia Development Fund based on the fulfilling certain requirements and criteria of the Bank of Mongolia. (more…)

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Bank of Mongolia took control of Anod Bank management

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 (more…)

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MP O.Chuluunbat: If we don’t react quickly, we will die in hunger

It is wrong for commercial banks to attract saving deposit with high interest rate.

MP O.Chuluunbat shares his views in this time of crisis and turbulence in the economy.

Q: Several years ago, saving and credit cooperatives offered so high interest for its saving deposits in order to attract its clients, but they went bankruptcy soon after. As for me, recently, commercial banks are repeating the same reaction and measures as the cooperatives did long ago before they had gone bankruptcy. What would you say?
O.Chuluunbat: Commercial banks have huge saving deposits from people. Therefore, the State shall monitor the commercial banks whether they are reliable or not, working good or not. Actually, the whole world is working like this. Also, people must be warned and updated with the situation. In other words, the Government organizations shall financially be transparent. The state and the financial organizations work for the interest well of people. (more…)

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Saving deposit size of individuals and entities decreased in October.

According to the Bank of Mongolia, money supply (M2) reached 2357.7 billion MNT at the end of October 2008 and it was decreased by 167.3 billion MNT or 6.6% if compares with the previous month, but increased by 1 billion MNT or 4.1% than previous year. Cash reached 329.3 billion MNT at the end of October 2008 and it was decreased by 31.7 billion MNT or 8.8% than the previous month, but increased by 6.2 billion MNT or 1.9% than the same time of previous year. (more…)

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INTERVIEW-Central Bank says Mongolian banking system stable

By Lucy Hornby

ULAN BATOR (Reuters) - Mongolia’s banks are adequately capitalised, with no need for a big financial injection, a senior central banker said on Wednesday.

B Enhhuyag, first deputy governor of the Bank of Mongolia, said a former central bank chief “exaggerated” on Tuesday when he said the banking system would need a capital injection of $500 million.

“We are officially stating: the banking system does not need any bailout. The fundamentals are safe and sound,” Enhhuyag told Reuters. (more…)

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Will banks provide housing loan?

Irregular Cabinet Meeting was held and discussed about the Government Agenda and housing and real estate issues, which was the main dialogue of recent days.
The Government drafted a new law on mortgage and proposed to the State Great Khural. But the new parliament decided to take comment from the new Government on this draft. Therefore, until proposing new draft law on mortgage, Government decided to take joint measures together with the Bank of Mongolia on activating commercial banks activities in mortgage loan and loan secured by the real estate. (more…)

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Loan size was decreased, but its ratio in balance

Housing loan issue was clarified from an official from the Bank of Mongolia

Q: You said about loan size was decreased. What policy is being pursued by the Bank of Mongolia?
A:In order to decrease inflation, loan must be in appropriate balance. For example, the money supply is around 20%, as the result of some measures taken by policy of the Bank of Mongolia. It is small number if compares with 30, 40 in the previous years and even in some years 70, 80%. It is in an appropriate balane if compares with similar economy and money supply of developing countries. Loan supply is relatively low, if compares with the previous years, but it is now in appropriate balance. (more…)

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The Press Conference on the Monetary Policy of year 2009

The President of MongolBank A.Batsukh and the First Deputy President D.Enkhjargal made the Press Conference on the Monetary Policy of the year 2009.
The principle of the State on the monetary policy was made in three years since year 2007 and it will be amended every year if necessary. According to the main principle of state monetary policy, the inflation rate of year 2009-2011 will be 9.5% in average, 12% in the end of the next year, 10% at the end of year 2010 and 6.5% at the end of the year 2011. The monetary and fiscal policy will be focused mainly on decreasing inflation and securing social welfare in Mongolia. Also the draft amendment on the Central Bank Law to establish Monetary Policy Committee was planned. (more…)

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