Legal Troubles of Development Bank of Mongolia
Mongolian Government's working group headed by Cabinet Secretary Oyun-Erdene asked Anti-Corruption Agency to probe the domestic lending practice of the state-owned Development Bank of Mongolia (DBM). The working group claims DBM allowed favourable borrowing terms to some companies with links to high-level politicians leading to large losses. According to the bank's 2018 financial statement, it incurred MNT 339 billion (~USD 128 million) loan loss on top of MNT 53.6 billion (USD 20.3 million) this year following Capital Bank liquidation.
DBM was established in 2010 and issued Mongolia's first sovereign debt Chinggis bond in 2012. DBM has B3 rating by Moody's and most recently raised $500 million bonds last October. US law firm Mayer Brown was cheering last year that DBM had a 'successful return to the international markets.'
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