The bill, which includes a one­time settlement of all pension loan repayment, is followed by a huge disagreement, leaving uncertainty among citizens. There are several reasons and facts that the bill is not the best option for pensioners. The cabinet on Monday agreed to submit Bill on full and one­time repayment of pension loans to the Parliament. As published previously on the Official Gazette, repayment of the pension loan will be financed from the future revenue of Salkhit silver and gold deposits owned by Erdenes Mongol LLC. According to the bill, the Government plans to raise funds by issuing securities; technically, the Bank of Mongolia (BoM) will in charge of the funds. However, the central bank can not be included in such budgetary activities due to the IMF’s ongoing program requirement. Thus, the government estimates Salkhit deposit has the recourse of 808.3 tons of silver, 1.1 tons of gold and net profit of MNT 1.1 trillion. Regardless of the fact, it was reported that the company has a net profit of MNT 251 billion and a current value of MNT 122 billion in the Feasibility Study approved in 2019.The Development Bank of Mongolia (DBM)’s guarantee is violating the "Law on Development Bank of Mongolia” as well. In article 12.2 of the law, “Guarantees can be made to projects and programs that meet the requirements specified in 10.1.2­10.1.5 of this law.”

Published Date:2020-01-09