Mongolia Business and Mongolian Daily Business News

Many problems are yet to come to the companies that run their businesses in the construction sector. Non-Governmental Organizations, Private companies and representatives of Trade Unions organized meeting under the title of ‘Construction and Unemployment’ yesterday. They have held talks with the Organizations for constructions, construction materials and presented a letter to the Ministry of road transportation, construction and urban development. The letter requests for help from the Government as the money flow in the construction sector is very limited. Read the rest of this entry »

Following a tight Interest rate policy from Mongol Bank we have seen positive impact on inflation and stronger value of MNT against foreign currencies. Mongol Bank set the Interest rate at 11.5% which is a decrease of 1.25% unit. Mongol Bank is able to reduce the Interest rate as we are experiencing slower rate of Inflation in the Economy which was 0.1% in May. As for now, to build a healthy economy it is important to encourage consumer spending by reducing the Interest rate and passing it on to the Combanks and to the customers. Economists predict that this help to slow down the current Economic crisis.

We are experiencing a slowdown in the economic financial sector as well others sectors especially in the housing sector. Sales of houses and real estate have slumped by 90% and prices fell 20-30% on average, a report shows. Government is implementing a housing project which will provide accommodation for 40’000 but constructions workers are worried because of the sharp fall in demand of houses in the housing market. A seminar aimed at construction workers was held. Government and Bank of Mongolia had provided speech about the policies and measures they will take during this difficult time. Read the rest of this entry »

The Bank of Mongolia attributes the current soaring of the US$ rate against the MNT to the few people who only pursue the short run benefits. MNT is the official currency in Mongolia. 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. The Bank of Mongolia informed that inspectors and officials are checking currency exchanges to ensure legitimacy by the Financial Regulatory Committee.

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. Read the rest of this entry »

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. 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 »

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. Read the rest of this entry »

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. Read the rest of this entry »

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. Read the rest of this entry »