355 thousand customers of Capital bank are reimbursed by MNT 110 billion

Translator E.Oyun-Erdene GoGo.mn

2020-02-07 10:27 GMT+8

Bank of Mongolia assignee to M.Adilbish made speech about Capital bank liquidate to press. Bank of Mongolia liquidate Capital Bank 9 months ago and assigned M.Adilbish as assignee at “Capital” LLC. He presented his main performances in the past.

Most deposit holders at Capital Bank have been reimbursed. At first, deposits up to MNT 20 million have been repaid by Deposit Insurance Corporation. After that, deposits up to MNT 500 million have been repaid. Only 30 citizens who have deposits higher than MNT 500 million are remaining. 

Total liability is MNT 641 billion. In order to reimburse deposit holders, central building, branches, furniture and other appliances are on sale. 

Repayment of large amount of loans is not sufficient. Thus, difference of MNT 205 billion is estimated despite all loans are repaid. In other words, asset and liability has much difference. Immovable property assessment might decrease when time passes. He also stated that ATM and POS machine are only purchased by other banks which makes the sales slow. 

BORROWERS WITH NON-PERFORMING LOAN WILL BE INFORMED TO PUBLIC IF PAYMENT IS NOT STARTED WITHIN FIRST QUARTER OF THE YEAR

M.Adilbish made above warning. Many people asked name the borrowers who received large amount of loan didn’t repay which caused the bankruptcy. Even politicians demanded the list of the names. But it is considered that informing the names public will influence on loan repayment.

Since a year has passed, name of borrowers will be revealed to public if the borrowers don’t start repayment and conclude repayment graphic with “Capital” LLC. 

As of April 10, 2019
• Total loan portfolio: MNT 241 billion
• Non-performing loan portfolio: MNT 204 billion (84% of total loan)
As of December 31, 2019
• Total loan portfolio: MNT 211 billion
• Non-performing loan portfolio: MNT 192 billion (90% of total loan)

CAPITAL BANK HAS EIGHT DAUGHTER COMPANIES

The bank purchased shares of companies that couldn’t repay the loan received from Capital Bank, and acquired 8 daughter companies. 

Management of these companies have been changed and involved in council of the assignee. Prosecutor have sealed 220 immovable properties and lands of these companies. Total cost is about MNT 200 billion. If the properties are unsealed, reimbursement of deposit holders can be repaid by selling the properties. But there are operational expenses of these properties such as tax, land fee, security and maintenance. Senior officers of prosecutor consider the properties should be sealed until the criminal case is resolved.

HIGHLIGHT TRANSACTIONS OF LAST NINE MONTHS

  • 18 nostro accounts at foreign banks and financial institutions were closed and currency equal to MNT 612 million have been placed to current account at Bank of Mongolia. 
  • 356110 shares of “MIK Holding” JSC, owned by Capital Bank, were sold by MNT 4 billion. And MNT 4 billion was repaid to principal payment of bond issued by the bank assignee, and MNT 52 million was repaid to interest. 
  • Mongolian Ipotek Corporation loan of MNT 83 billion was transferred to UB city bank and Khan Bank. 
  • MNT 44.7 billion was transferred to Khan Bank for reimbursement of 354 260 customers’ and corporates’ deposit. Payment invoice was received and approved, and payment of MNT 65.9 billion was made to 827 creditors in a list.
  • Total MNT 628 billion receivables from Capital bank are confirmed. MNT 562 billion of 89 creditors remain at year end. 
  • The bank assignee issued bond of MNT 5 billion in total. As of 2019 end, repayment of MNT 8 billion and MNT 42 billion remains. 
  • In framework of Bank of Mongolia permission, arbitral lawyer assessment, Law on Company, securities confirmed by Capital bank immovable properties has been issued and bond agreement was concluded with “MIK” with a year term. MNT 50 billion fund was received and MNT 400 million was disbursed to current and deposit account holders.
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