2015-12-30 16:12 GMT+8

Commercial banks freeze all mortgage loans

All commercial banks have frozen all the mortgage loans after the State Great Khural announced decision of the Constitutional Court to void some of the clauses of the Immovable Property Mortgage Law as an action of boycott on Thursday, December 10th.

Which in turn leads the APR of the mortgage loans of over 76 thousand citizens who have mortgage loans with APR 8% to jump as high as to 20%. The first claim was received from citizen A.Bazar who stated that: “It is a violation of a citizen’s right to seek for an official approval from banks to be able to rent the property under mortgage loan.”

Constitutional Court have discussed the matter on December 9th seating and ruled that it is a violation of the equality of the citizens to provide with advantage the pledger side and violates the basic rights of the owner.

Majority of the MPs have voted pro the changes whereas bank owners have been watching closely the development process and have come up with decision to freeze the loans for an indefinite period of time.

Bank workers have mentioned that citizens whose loan application has been approved are still unable to receive their mortgage loans due to this changes in laws.

Although Mongolian Bank Association has sent and official letter warning of the negative consequences to the State Great Khural it was of no help. Politicians are working on draft law to make changes and fix their “mistake”.

Constitutional changes to be shifted to next year

Working Group led by MP N.Batbayar to propose the amendments into the Constitutional Law have come up with the draft, which is ready to be discussed.

Nevertheless, rulers have decided to conduct public voting before touching the Father Law. To do so amendments to the Draft Law on Public Polls have to be done and the discussion on the draft was held in mid-November and the initial discussion of the amendments to be held soon.

But the process has been postponed until now. The amendments propose the plenary powers of the government, ensure the stability of the state activities and avoid the change of the ministries every time the government is set a new.

Constitutional amendments propose the number of the ministries to be 9 and the number of the MPs to be increased to 99 in view of the population increase lately in order to ensure the proper representation of the public at the state level.

While public is not very keen to support those changes and are watching closely on the development of this issue. While the current Parliament does not have enough time to make the amendments and some of the MPs are accepting this. 

1700 prisoners have been pardoned

In view of the 25th anniversary of the establishement of the State Great Khural and Democratic voting Parliament has approved the Law on Pardoning.

According to the law about 3000 prisoners have been included in the pardoning and 1700 have been released from prison and 1300 prisoners have remitted their punishments.

Approval of the pardoning law has been conducted after six years from the previous one and has divided the public into sides as some think that it is inappropriate to pardon the convicts.

This time the pardoning did not include those who were punished for corruption and misuse of their positions. That way the state has shown its soft side and provided the prisoners with a chance to fix their mistakes and lead proper life.

Budget of MNT 130 million to help the released prisoners to adapt to life after prison, travel home and socialize has been approved. 

25 year old democracy

July 29th was the celebration of the 25th anniversary of the Parliament, the day of the very first democratic elections held.

International Conference to commemorate the anniversary was organized by the Office of the President with the participation of the international guests from India, Japan, France, Germany, USA, Switzerland and many state heads have congratulated Mongolia on such an achievement.

Mongolia boasts with the peaceful democratic revolution held with no fatalities and is valued at international level for those achievements. President of Mongolia in his speech delivered at the conference said: “Democracy is not the one time choice, it is a process. And the process is difficult and requires a lot of effort. We view the democracy as human and similar to human life. This is human choice and the human is the main moving force of it. Therefore, it is crucial to work hard every day. We should cherish our democracy. It will cost a lot to restore the democracy once it is gone.”

"Democracy is not the one time choice, it is a process. And the process is difficult and requires a lot of effort."

Gatsuurt deposit is being in the center again

Government has submitted the State Great Khural Resolution Draft on establishing the state ownership of the deposit for discussions for the third time.

The draft has been recalled twice back in February and June as it was viewed not necessary to be discussed. Previous draft submitted proposed the 20 percent state ownership, while the new submitted draft proposes 34 percent state ownership, which is the highest possible stake according to the Law on Mineral Resources and to be replaced with loyalty payment for the use of the mineral resources.

The license for the Gatsuurt deposit with the proven reserves of 50 tons of gold is owned by Centerra Cold and the license holder is to pay the loyalty payment for the use of the resources which is to be 3 percent. This number can be altered.

Sides have included flexible conditions to alter the percentage in view of the global market price for gold. The deposit is located in Mandal soum of Selenge aimag and is counted one of the best deposits with high gold contents and is currently hosting over 1800 ninja miners.

Although the security is working at the site ninja miners are refusing to leave the site and create commotions, which has been broadcasted through public media several times. Government has introduced that this project is to continue for 10 years and mining and processing of the gold is possible once the issue is legalized.

Although the Government is submitting the project for the third time viewed as one of the leverages for the declining economy is in hands of the Parliaments. 

1 | 5 images

Politics of N.Enkhbayar

Former President of Mongolia and Leader of the Mongolian People’s Revolutionary Party (MPRP) N.Enkhbayar came back to Mongolian in August after long period spent in South Korea for medical reasons.

If he was leading the party activities from distance, now he is doing it from within and in doing so has played main role in activating the upcoming election preparation. PM Ch.Saikhanbileg has received submission of N.Enkhbayar’s candidacy to the Vice Minister by the MPRP on December 10th.

It is obvious that N.Enkhbayar has to overcome many criteria to be approved for the position and it is unknown whether he can do that.

Firstly, PM has to study the candidacy and support. Secondly, as the former President has been convicted of corruption, inquiry has to be delivered from the Independent Agency Against Corruption. Next, to discuss the candidacy with the President.

Finally the State Great Khural discussion has to be held and supported by the majority of the MPs. It is unknown if N.Enkhbayar, once been at the top position, could be approved for the Vice Minister.

Hence, this is one of the highlights of the political life of the year 2015. 

Ministers appointed from Mongolian People’s Party (MPP) being outcasts

Ruling Democratic Party has proposed MPP to cooperate in the establishment of the cabinet, but has turned its back after eight months.

Two parties with the most seats in the parliament have agreed to cooperate in order to overcome the economic decline, unfortunately the cooperation did not last long.

DP group has assigned the PM to dismiss the ministers appointed from MPP having concluded that those haven’t done anything prominent to fight the economic decline other than just criticizing and politicize.

Although PM has expressed his wish to proceed with the current cabinet members in order to provide the stability, he has been pushed by the DP and agreed to the matters.

1. Deputy Minister U.Hurelsuh | 6 images

At the end, PM has submitted the request to dismiss six MPP ministers and seven vice ministers to the State Great Khural. Ruling DP has decided to continue without any coalition with other parties.

Photo credit: B.Byamba-Ochir

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