Khurelbaatar Chimed: 319 entities drew loans from two funds www.zgm.mn
Minister of Finance Khurelbaatar Chimed held a press conference after the Cabinet meeting yesterday to disclose the results of investigations on state-owned funds, which was conducted following the disclosure of Small and Medium-sized Enterprise Development Fund scandal. However, the finance minister refused full disclosure and postponed the matter onto the fourth week.
The investigations on special purpose funds have been completed weeks ago. But the Cabinet is refusing the reveal the information of loaners, assuring to present it next week. This was the third time the Cabinet postponed the results.
Mr. Khurelbaatar addressed, “There are cases where a single entity was granted loans from three different funds and there are a total of 319 private entities that have drawn loans from two funds.
Many companies are overdue on repayment, but due to the fact that the Bank of Mongolia does not register the repayment of these funds, the reimbursement has been under a major delay. The overdue loans were reduced from the initial amount of MNT 130 billion to MNT 100 billion in the last one to two months.”
Since the establishment of the Farming Support Fund, over 16,000 entities have drawn loans two or more times. The minister explained that the majority of these were used to pay off previous debts. Further more, a request has been delivered to the Cabinet on dissolving some of these funds. Mr. Khurelbaatar then noted to provide details on the matter once the Cabinet reaches a decision.
Farming Support, Livestock Protection, and Employment Promotion funds granted MNT 938.8 billion worth loans to individuals and entities. As of 2017, the total loss amounted to MNT 395.3 billion. The minister suspects that the loaners may have saved the loans in commercial banks as the interest is lower than savings rates.
Published Date:2019-02-21