STANDING COMMITTEE BACKS ISSUING OF BONDS
Ulaanbaatar, Mongolia /MONTSAME/ On Tuesday, the parliamentary Standing committee on budget decided that the cabinet would be given a right to issue MNT 300 billion worth bonds.
The bonds are dedicated to maintaining a normal process of granting money from the Human Development Fund and giving out pensions and salaries. The committee strictly said that bonds must not be issued for other purposes.
O.Chuluunbat MP stressed that there is no need to grant loans to the wool and cashmere sector from the budget, for they can get loans from commercial banks.
Ts.Sedvaanchig MP underlined an importance of a control over the implementation of distribution of loans in the 300 billion bonds sale to the targeted people, adding several complaints have been sent by localities about this matter.
The members said it is required to stop selling bonds to commercial banks with high percentage, instead, transparent stock exchanges and international companies can apply for loans with 4-5 per cent.
“During the 2008-2009 crisis parliament approved laws to protect interests of depositors and the state took all the the risks, but now these laws will expire soon. For this reason, a draft law on insurance for savings will be submitted to parliament in nearest time,” the Minister of Finance D.Khayankhyarvaa said.
B.Khuder
The bonds are dedicated to maintaining a normal process of granting money from the Human Development Fund and giving out pensions and salaries. The committee strictly said that bonds must not be issued for other purposes.
O.Chuluunbat MP stressed that there is no need to grant loans to the wool and cashmere sector from the budget, for they can get loans from commercial banks.
Ts.Sedvaanchig MP underlined an importance of a control over the implementation of distribution of loans in the 300 billion bonds sale to the targeted people, adding several complaints have been sent by localities about this matter.
The members said it is required to stop selling bonds to commercial banks with high percentage, instead, transparent stock exchanges and international companies can apply for loans with 4-5 per cent.
“During the 2008-2009 crisis parliament approved laws to protect interests of depositors and the state took all the the risks, but now these laws will expire soon. For this reason, a draft law on insurance for savings will be submitted to parliament in nearest time,” the Minister of Finance D.Khayankhyarvaa said.
B.Khuder
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