the Government of Mongolia Provided 1 Trillion Mnt Capital Injection to Dbm
On December 28, 2016, the Parliament and the Government approved a resolution to increase Development Bank of Mongolia's (DBM) capital by one trillion MNT(approximately 400 million USD) and to transfer loan portfolios that will be repaid from the State budget to the Ministry of Finance.
Since its inception, DBM has extended more than fifty percent of its loans to projects that have no revenue generating abilities. These projects include roads, bridges, and utilities, and their repayments were guaranteed by the State Budget.
Many criticized DBM's business model and past practices of financing a...
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