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Economy / Featured News / Mongolia News / Politics / November 27, 2014

The newly elected Prime Minister’s economic policy

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In an official address to Parliament, newly elected Mongolian Prime Minister Ch.Saikhanbileg resolved to take prompt action in mending the recent damage done to Mongolia’s economy.
Defining his government’s general policy as supportive, quick and solution oriented, he looks to focus on creating a more open and welcoming business environment. Such draft bills as the Law on Special Permits and Licenses and the Law on Economic Transparency are to be immediately reviewed in parliament for approval, to remove the current barriers to mining sector expansion.
Regarding the recent failures of parliament, which has done little but watch the economy spiral into a near crisis, the prime minister announced: “We are the cause of the economic crises.” He repeatedly stated parliament must take intense and powerful action to move forward.
The new government aims to restore faith in the economy with policies supporting the private sector and expanding businesses. This includes the creation of a new loan management structure, to be based on a balanced combination of investment and soft loans. Meanwhile Parliament Resolution 34, regarding the restructuring of ministries, ministerial titles and responsibilities, is to receive full implementation.
Additional measures include reforms to the private ownership of state properties, beginning with privatisation in the social sector and the introduction of corporate governance features.
The establishment of an investment fund was announced, as the government looks to support commercial banks in raising foreign investment. The government seeks to actively increase investment flow to Mongolia, and will begin willingly collaborating with the private sector in this direction.
The Prime Minister’s development policy covers tourism, information technology, and agriculture—especially the meat and cashmere industries—in addition to the revival of the mining sector. He noted: “Let us create an economy with sufficient capital reserve, correct management, and risk management from now on.”
The newly established government will eventually start the realisation of a USD 1 billion soft loan from China, which may lessen the ever-increasing USD exchange rate, currently at MNT 1883.
Ch.Saikhanbileg strictly noticed that the multi-billion dollar Oyu Tolgoi mine’s stalled expansion, a problem keeping out many who want to invest in Mongolia, is an issue that must receive the highest attention of parliament. Economic difficulties will remain until the new Prime Minister’s words become reality.
SOURCE: Mongolian Economy

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