The 100 Day Stimulus Plan has gone underway, reaching its third week in planning and consulting. Every Monday, the Economy Council manages meetings to discuss certain facets of the stimulus plan. This week’s topic revolved around financial services, more specifically, loans from banks. Working in joint collaboration with the Mongol Bank and the Mongolian Banking Association, representatives spent time going over the difficulties of receiving loans from banks as well as possible improvements regarding the loan process.
The Economy Council already conducted extensive analysis and recently submitted advice to the government and to Mongol Bank on how they can make changes to the loan process to make it easier for investors to borrow money. Many borrowers run into problems when they find it difficult to repay debts. With new changes, more options can be set into place, including an option to renew conditions of the loan as well as allow for negotiation with the banks.
By giving in more effort to increase investment in Mongolia, the Investment Law was successfully passed. What is next on the agenda are the Minerals Law, Debt Law, and Oil Law. Financial sector representatives are meeting this week to further discuss the possibilities and difficulties of these laws as well as the reliance on banks and how Mongolia can increase its investment funds.
In line with the 100 Day Stimulus Plant, the Mongolian Economic Forum is organizing an international investor’s forum between June 19 and 21. Currently, over 150 representatives from over 30 different countries will attend to discuss future steps to take in regards to Mongolian investment. Mongolian companies, such as Oyu Tolgoi, MAK, Gobi, APU, and Khaan Huns, are going to introduce their businesses to these investors.
SOURCE: Mongolian Economy