The audit report on the 2009 budget has said the wording
of the Government guarantee behind  loans
taken from foreign countries was vague and convoluted and it is “hard to
understand” who would finally be responsible for their repayment. The problem
stems from bureaucratic incompetence which, in turn, is to be traced to
frequent changes in officials in charge of preparing loan documents since 1993.
In 2007, the loan retrieving department of banks was given charge of the matter
but it was brought back to the Finance Ministry in 2008. .

The report identifies loans worth MNT 5.7 billion
concerning about 40 organizations as being so suspect. This is 14 percent of
the total MNT 40 billion of state loans.

MNT 1 trillion 104 billion of MNT 1 trillion 335 billion
loans taken from foreign countries and international financial organizations
was distributed to government organizations and the remaining MNT 230 billion
was given to private entities. The stipulated repayment period for MNT 130
billion of loans is already over.