Standing Committee approves monetary policy
On Tuesday, the Standing Committee on Economics discussed monetary policy for 2012. The committee decided to submit the policy to Parliament.
Parliament has already decided to trim more than MNT 1 trillion from the 2012 budget. Mongol Bank hopes the cuts will hold inflation under ten percent.
Mongol Bank President L.Purevdorj told the committee that about MNT 500 billion will be allocated to citizens, and in this case the economy will not be damaged. He noted that if the amount exceeds MNT 500 billion, the economy would be put at risk.
L.Purevdorj suggested limiting government allowances to citizens by spreading the payments out over five or six years. Elderly and disabled people are already slated to receive an allowance of MNT 1 million each in 2012.
L.Purevdorj also stated that loans have been the main source of financing for the private sector. Loan amounts increased by 61 percent in 2011 and could increase by 35 percent in 2012. Organizations have borrowed MNT 6.1 trillion and citizens MNT 2.7 trillion from commercial banks.
He also added that, barring unseen influences, Mongolia’s economy will be stable. He emphasized that the state should work to encourage economic growth, but that rising meat and fuel prices could cause some inflation.
Parliament has already decided to trim more than MNT 1 trillion from the 2012 budget. Mongol Bank hopes the cuts will hold inflation under ten percent.
Mongol Bank President L.Purevdorj told the committee that about MNT 500 billion will be allocated to citizens, and in this case the economy will not be damaged. He noted that if the amount exceeds MNT 500 billion, the economy would be put at risk.
L.Purevdorj suggested limiting government allowances to citizens by spreading the payments out over five or six years. Elderly and disabled people are already slated to receive an allowance of MNT 1 million each in 2012.
L.Purevdorj also stated that loans have been the main source of financing for the private sector. Loan amounts increased by 61 percent in 2011 and could increase by 35 percent in 2012. Organizations have borrowed MNT 6.1 trillion and citizens MNT 2.7 trillion from commercial banks.
He also added that, barring unseen influences, Mongolia’s economy will be stable. He emphasized that the state should work to encourage economic growth, but that rising meat and fuel prices could cause some inflation.
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