Some MNT10 billion was withdrawn by account holders as all the 20 branches of Anod Bank in Ulaanbaatar resumed normal work on Monday. Earlier the Mongolbank had transferred the necessary funds to the bank.

S.Nasanjargal, the Mongolbank special representative to sort out the affairs at Anod Bank, told our reporter that while many people had withdrawn money on Monday they had been prepared for a larger number. Asked if such mass withdrawals would not make things difficult for the bank, he said citizens cannot be stopped from taking their own money back.
They had anticipated such a development and had planned accordingly.  However, he wanted to assure people that their money was safe and by withdrawing their deposits they would merely be losing the interest on them.
The next step, he said, was to talk to those who owed the bank money. If they start repaying their loans, Anod Bank will be solvent again. Asked about the status of big loans given in the last few months to companies such as Mon Uran and Mongol Gazar, Nasanjargal said the time for their final repayment was not yet due. However, the schedule of repayment installments had not been followed. “So we have to ascertain the reason for the delay and after that we shall decide what steps to take. If a borrower has temporary financial difficulties that we consider legitimate we would surely extend the time for repayment,” he said.
Asked how long it would take for Anod Bank to resume normal banking operations, Nasanjargal declined to offer any time frame but hoped it would not be later than two to here months. He will be in charge for one year.
He felt that once people realized that they had not lost any money at Anod Bank, their faith in the banking system would be restored. He also rejected the charge that the Mongolbank should have acted earlier, saying that the latest monitoring finished only in November and the Central Bank acted immediately on finding the actual state of affairs at Anod Bank.

 

Source: en.news.mn

Dec 17, 2008