The Chinggis Khaan bank’s consortium offered over US $20.1 million while the Anod-Monnis Consortium gave US $18.71 million and Soyuz Bank of Russia submitted US$18 million.

“Mongolian Government and State property Committee are very satisfied because we could privatize the Savings Bank with the highest price, more than previous state owned banks. The Trade and Development Bank was privatized by MNT 12.5 billion and Khaan Bank was sold for MNT 6 billion when it had been MNT 94 billion in assets. But the Savings Bank has sold by MNT 23 billion when it has only MNT 54 billion in assets,” said D. Sugar Chairman of the State Property Committee Thursday.

“This privatization is proceeding without any dispute and it is proceeding fairly” he added.

The Savings Bank was the last state owned bank in Mongolia and was privatized during a time of increased foreign investment, members of the Chinggis Khaan Consortium said.

“This privatization price is quite a bit higher than previous bank privatizations. But the investors in this project believe in Mongolia’s economy situation,” said Daniel Mahoney, Attorney-At-Law for Chinggis Khaan consortium.

“Now the Mongolian economy growth rate is raising 5-10 percent every year. This is a very good condition so foreign investors have the interest to invest in Mongolia,” Mahoney noted.

Five organizations were competing for the privatization of the Savings Bank while the Capitron Bank Consortium and Trade and Development Bank were cut from the technical proposals, prior to the financial selection, because the State Property Commission, Mongol Bank, Ministry of Finance and Ministry of Justice and Domestic Affairs did not approve their participation in the tender process, leaving the three banks for today’s final selection.

“The two sides are making the contract today and Chinggis Khaan Consortium will pay the money to the Mongolian government within one month and then the process will be finished,” said Ts. Nanzaddorj, head of the State Property Management and Privatization Department.”

 All Images Copyright: Luke Distelhorst