A parliamentary working group established to investigate and regulate the operations of Mongol Bank reported the findings of their investigation to the parliamentary caucus of the Mongolian People’s Party (MPP), stating that Mongol Bank has a deficit of three trillion MNT.

The working group was established on February 1. MP T.Ayursaikhan headed the group, whose members included MPs M.Oyunchimeg, Ts.Davaasuren, Kh.Bolorchuluun, J.Bat-Erdene, and S.Chinzorig.

Mongol Bank’s operational deficit was investigated. In the past four years, the bank’s deficit has doubled every year. In 2016, the bank reported a deficit of 962 billion MNT. The working group investigated the reasons for the deficit, as the bank’s deficit puts pressure on the state budget.

“Until 2011, the bank was working profitably. It experienced a deficit in 2010, but was profitable in most years. But in 2012, Mongol Bank began experiencing significant deficit. We will investigate and reach a conclusion,” the working group’s members stated in February.

The probe, which ended on April 30, encompassed all of the operations of the bank, including commercial loans that were issued that were alleged to be illegal, the bank’s transparency, and their financial statements.

Reports that the central bank has experienced a deficit of three trillion MNT since 2012 have not been verified, but analysts say they are plausible due to the bank’s spending on price stabilization and the state’s mortgage program. If the claims are true, the central bank’s deficit is equal to half of this year’s state budget.

Some members of the MPP advocated for keeping the results of the investigation classified, due to the controversy that might be created leading up to an important presidential election. There are unverified reports that Mongol Bank provided commercial loans with an interest rate of 0.85 percent when it is not legally allowed to do so.

Reports indicate that the results of the investigation were handed out to members of the MPP were confiscated after the meeting, and that all of them were required to sign a confidentiality agreement.

When reached for comment, a Mongol Bank public relations officer said, “Due to spending on the price stabilization project and the mortgage program, that number may be plausible.” However, the public relations officer failed to verify if Mongol Bank had a deficit of three trillion MNT.