Ts. Nanzaddorj, Head of the State Property Management and Privatization Department said, “Anyone, who proposed the highest price for the Savings Bank’s privatization will win.” 

“The criteria are quite clear.”

The State Property Committee announced the international open tender for the sale of the 100 percent state owned equity interest in the Savings Bank LLC more than two months ago. The minimum asking price for the Savings Bank was MNT 12 billion.

“The minimum asking price was approved higher than the Savings Bank’s total active amount because this bank is not one of the larger institutions. It is a medium bank. But I believe that the privatization price would raise at least 1.5 times.”

Officials at the department said that there had been no problems in the process.

“I believe that wouldn’t be any error in the all steps of the privatization process and the selection’s technical issues. We prepared for this privatization’s technical all things for two years. This preparation period is longer than previous banks privatization’s preparation. Also we have good experience to privatize bank. We privatized Trade and Development Bank, Khaan Bank and state owned 7 percent of the Capital Bank. Those banks are bigger than Savings Bank,” said Nanzaddorj.

“The State Property Committee is waiting on just two results from the Savings Bank’s privatization. One is of course the highest price and is more than 200 percent that of the second bidder.”

Officials said some of the goals of the privatization were to improve the loan sector and offer long term credit to the citizens of Mongolia.