3,433.03
Rumors on the StateBank being privatized just will not go away. The talk now is that the use of
the word “State” in the name of a bank gives it an unfair advantage over
commercial banks and that the privatization is planned in 2011. No futher
details are available and officials of the State Property Committee say they know
nothing of such plans, but a clue could be seen in the MNT98.4 billion included
in the budget revenue from state property privatization. MNT60 billion could well
be raised from the sale of State Bank shares to the public.
Ministry of Finance officials give no credence to the rumors and the Mongol
Bank is happy with the performance of the State Bank. Privatization can send
wrong signals, Mongol Bank officials feel. However, a section in the Mongol
Bank sees merit in the argument that state control of a bank lays it open to
unjust pressures from the powerful.
The State Bank has not defaulted on any payment, has sufficient capital to
cover its liabilities, and the loans it issued are being repaid in time. These
also include loans worth MNT70 billion taken originally from the Zoos Bank.
