Mongolia has launched a crucial state loss compensation process to recover public funds from troubled banks. Recently, Prime Minister Zandanshatar Gombojav issued a decree that establishes a Working Group (WG) to oversee this effort. The group’s main goal is to eliminate financial losses that the state suffered due to bank failures and asset mismanagement.
The Working Group, led by B. Tsengel, head of the Policy Coordination on State Property Agency, includes representatives from many government bodies. They come from the General Executive Agency of Court Decision, Bank of Mongolia, Ministry of Finance, Ministry of Education, Independent Authority Against Corruption, General Department of Health Insurance, General Department of Social Insurance, General Agency for Labor and Welfare Services, and Development Bank of Mongolia.
Furthermore, the Prime Minister and the WG recently visited the Gantig Villa project site in Khan-Uul District. This visit forms part of the state loss compensation process. Although the bank’s receiver transferred a nine-block residential complex for 180 households as debt repayment in 2022, the project remains stalled. The team inspected these assets, which the receiver proposed as part of the debt settlement. The complex carries a valuation of MNT 86.6 billion.
Moving forward, the Working Group plans to take urgent action to bring the assets into economic circulation. First, they will carefully review the asset valuations. If they find overvaluation, the group will report the issue to legal institutions and hold responsible parties accountable. Additionally, the WG will claim the price difference caused by debt repayment. Next, they will organize an open auction and deposit the proceeds into the relevant state funds to ensure the government recovers its losses.
Moreover, the WG will register a 648-square-meter, two-story property in Khan-Uul District as state revenue. The property currently stands 90 percent complete. The group will calculate how much funding it needs to finish construction. Once complete, they plan to use the property as a kindergarten, addressing the community’s needs.
In addition, the Working Group must compile a comprehensive list of assets proposed for debt repayment. They will also oversee the sale of recovered assets. The group will prepare proposals to prioritize the use of immovable properties obtained through debt repayment, focusing on education and healthcare sectors. Furthermore, they will develop proposals to complete and commission unfinished buildings, using state budget funds and public-private partnerships.
In conclusion, Mongolia’s state loss compensation process gains momentum thanks to this dedicated Working Group. Through coordinated efforts and urgent actions, the WG protects state finances, maximizes asset value, and returns stalled projects to productive use. Ultimately, these measures aim to strengthen public trust and improve economic stability in the country.
