Улаанбаатар
Parliamentary standing committee discuss unprofitable enterprises
Economy
Ulaanbaatar /MONTSAME/ During the meeting of Parliamentary Standing Committee on Economics held on May 2, Ts.Nyam-Osor, Head of the Agency for Policy Coordination on State Property held a discussion on current issues.
According to Ts.Nyam-Osor, a total of 94 percent of 160 state-owned companies is operating on a deficit budget. The overall revenues of these companies were MNT 105 billion, while the expenditures skyrocketed to MNT 111 billion in 2016. With over MNT 6 billion of deficit, these companies are in debt of MNT 48 billion.
He informed that a draft Parliamentary resolution on privatization in 2017-2020 has been submitted to the Government. The draft claimed to be included full divestiture of 8 companies, reduction of Government's stakes in 5 companies and restructuring of 3 companies. Since the Government's decision hasn't been made yet, further information is yet to be disclosed.
During the meeting, MP D.Damba-Ochir said “Government should cease to intervene in private entities. Due to the establishment of the Mongolian Agricultural Commodity Exchange, the price of leather declined. As such, some counterproductive state-owned companies, including the "State Housing Corporation of Mongolia" and "Telecom Mongolia" JSC need to be privatized”.
B.Tugsbilig
