On March 16, the first meeting of a Council to protect the interests of investors was held to hear reports about the current situation of the investment environment and the progress of large-scale investment agreements and arbitration cases or disputes in which the Mongolian government was involved.
More than half of foreign investors in Mongolia are said to have left in the past 4 years. While on the one hand, the reason behind this is the current economic difficulties, on the other hand, inconsistent policy and withdrawal of contracts by the government what caused investors to lose their trust.
Therefore, Prime Minister J.Erdenebat has issued an ordinance to establish the council aimed at urgent settlement of complaints and petitions regarding the protection of the interests and rights of investors and bureaucratic and illegal activities, as well as prevention and potential risks.
Members of the council, chaired by J.Munkhbat, head of Cabinet Secretaries, include Minister of Finance, State Secretaries in charge of Justice and Home Affairs, Road and Transport, Mining and Energy and advisors to the Prime Minister, department heads of corresponding ministers and representatives of National Development Agency, Development Bank, Mongolian Chamber of Commerce and NGOs.
The meeting held yesterday emphasized the importance of resolving any complaints and petitions made by investors before they are filed to court or arbitration. The council blamed government ministries, agencies and local administration on not functioning properly in this regard. Also, it was reported that foreign investment has been reduced substantially in recent years and there are five major investment contracts made presently.
The current government is working to protect the interests and rights of investors. It is indispensable for us to gain the trusts of investors and attract more investment in order to overcome the economic recession with the help of mutual understanding and creation of more favorable legal environment.
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