Academics charge Government with economic inaction Print E-mail
economy.jpeg        Dr. N.Dashzeveg, Principal of the Mongol Institute, and Professor Dr. D.Purevbaatar have criticized the Government and Parliament for failure to take appropriate action as Mongolia enters the second stage of the economic crisis. GDP, a key indicator of the state of the economy, has fallen in five successive months. Industrial output dropped by 7.7 percent, state revenue by 22.8 percent and corporate incomes by 45.5 percent only in May.


    They fault the Government for not acknowledging the severity of the situation, or at least for not sharing it with the people. It uses the Mongolian word for “difficulty” when other countries openly say “crisis”.
“The wrong policy followed by Mongolbank is dangerously affecting the viability of commercial banks, all 14 of which are threatened with bankruptcy,” they say, charging the Central Bank with not having “a crisis policy”. People’s financial insecurity shows no signs of abating, and unemployment is rising. Fuel and food prices went up sharply and do not fall.
Commercial banks do not have money to lend, meaning the construction and trading sectors have no access to credit. The country’s macro economy has almost come to a halt, affecting the value of the MNT, putting both private companies and the state budget into trouble.
“A USD should sell for MNT1,120-1,150 and not MNT1,500,” the academics said, estimating that the Mongolbank needs to spend USD20 million to stabilize the currency.
The Mongolbank provided USD384 million to commercial banks from the budget, but MNT180.5 billion is still needed to finish construction works that have begun.
Source: www.news.mn
 
Mining News
TESTS CONFIRM OIL ALONG PETRO MATAD'S DAVSAN TOLGOI TREND TESTSCONFIRM OIL ALONG PETRO MATAD'S DAVSAN TOLGOI TRENDMongolia-focusedoil expl...
Political News
U.KHURELSUKH VISITS CONSTRUCTION SITE U.KHURELSUKHVISITS CONSTRUCTION SITEThe Secretary-Generalof the Mongolian People...
 
Business News
ZTE clicks new deal with Mongolia           ZTE Corp of China has ann...
Economy News
SIMON MORRIS TAKES OVER AS CEO OF KHAN BANK SIMONMORRIS TAKES OVER AS CEO OF KHAN BANK KhanBank has announced that Simon Mor...
 
Real Estate
BUILDERS WORRY ABOUT CORRUPTION IN APARTMENT SALES Construction companies are nothappy that the Government wants to use the Apart...
Company News
MONGOLIAN WOLF TO BE ‘UNSTOPPABLE’ Mongolia may become the world’s fastest-growing economy in the next decade...
 

Top 30 Companies

Do you want to receive Mongolia financial news everyday?

Financial News


Receive HTML?

People views

Partners

Mongolia News

APIP Corporation | Mongolian Properties | Regency Residence | Mongolian Travel Guide | Mongolian Resorts | Mongolian Resorts Guesthouse
Ubdeli Restaurant | Oasis Nightclub | Altansan Securities | Moda Cashmere | Mining Mongolia | Central Asian Cement