PM provides updates on international banking and financial organization projects

PM J.Erdenebat speaks to Parliament

During Parliament’s session on Friday, Prime Minister J.Erdenebat held a briefing about cooperation between the Government of Mongolia and international banking and financial organizations.

The PM pointed out that Mongolia is collaborating with the International Monetary Fund (IMF) to implement its sixth program in Mongolia since 1991. Following the Government of Mongolia’s enrollment in a three-year extended fund facility program from the IMF, analysts believe the World Bank, Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and other international banking and financial organizations, as well as individual foreign investors, are more likely to trust investing in Mongolia again.

Prime Minister J.Erdenebat noted that the Government of Mongolia has collaborated with World Bank Group organizations to implement 136 projects since 1991, valued at 837 million USD, that have to be carried out in Mongolian finance, agriculture, society, energy, mining, labor, and trade. The Prime Minister pointed out that the Government of Mongolia intends to take out a two-year soft loan of 160 million USD from the International Development Association of the World Bank in 2017.

He added that the ADB has collaborated with Mongolia to implement over 260 projects and programs since 1991, measuring in 1.6 billion USD in the form of credit, non-refundable aid, and technical support. The PM noted that Mongolia is cooperating with the ADB to implement projects to diversify the Mongolian economy, and is focusing on environmentally sustainable growth by enhancing economic and social stability, and promoting the development of efficient infrastructure through 2020.

Prime Minister J.Erdenebat pointed out that the EBRD is actively collaborating with Mongolia and has issued a long-term loan of over 1.4 billion USD, and that the World Bank Group’s International Finance Corporation and other foreign investors have invested over two billion USD in Oyu Tolgoi’s underground mine project.

The PM also reported that Mongolia is negotiating with International Investment Bank (IIB) on the granting of a sevenyear soft loan of 50 million EUR, which would expand the implementation of a strategic partnership agreement between Development Bank of Mongolia and the IIB, and support Mongolia’s economy.