Parliament approves resolution regarding Bank of Mongolia’s loss of MNT3 trillion

2017-06-08 15:45:05
Ulaanbaatar /MONTSAME/ A Parliamentary working group revealed that Bank of Mongolia (BoM) has an accumulated loss of MNT3 trillion. The working group examined the activities of  BoM in 2012-2016 and concluded that necessary measures have to be taken immediately.  

Today, 8 June, the parliamentary resolution on measures to be taken in connection with the examination to BoM was adopted during its plenary meeting. Law on Central Bank regulates if there is a deficit between the sum of the Bank of Mongolia’s assets and the sum of its liabilities, the parliament should resolve it so that the Government covers the loss by issuing Government securities. In other words, the loss should be recovered by state budget; however, it is impossible to cover the loss from state budget due to budget overload. Therefore, the parliamentary resolution targets to cover the loss and charge liability to relevant officials found guilty.

An international audit organization also audited the BoM activities and proved the loss of MNT3 trillion, noted MP D.Damba-Ochir.  The working group head MP T.Ayursaikhan said ‘- MNT3 trillion is a huge amount of money that equals to 50 per cent of the total state budget. There is no possibility to cover the loss from state budget. I am not saying that the previous governor of  BoM N.Zoljargal should bear the responsibility for all, but due liability should be imposed on him”.  

According to him, 45 companies among which received loans within the Price stabilization program, have not spent the loan for the actual purposes. These companies would be forbidden to participate in any bid for three years in compliance with their contracts”. MPs blame previous authorities of BoM for conducting actions breaching relevant laws and abusing their positions, including overspending money for social protection of its staff.

“BoM takes international audit on its activities every year and 2016 report concluded deficit of MNT3 trillion. This loss is composed of several parts" explained current BoM officials in response to MPs questions.