Parliament revoked provision that halted IMF`s program


2017-05-05 10:03 GMT+8

Parliament discussed a draft resolution on revoking 11th provision of 29th resolution at its plenary session yesterday, which caused a delay in IMF`s program. 36 out of 55 MPs (65.5 percent) attended the session supported the revocation of provision. 

11th provision of the resolution states major companies such as Oyu Tolgoi LLC to transfer their all payments and transactions through banks only operating in Mongolia, aiming to increase the currency reserve. 

IMF warned Mongolia that Mongolia`s investment environment might be worsened in accordance with the 11th provision and the provision could be harmful to investors. Therefore, IMF has given the recommendation to review the resolution.  

In regards, Minister of Finance submitted a proposal to revoke the provision to the Budget Standing Committee. Thus, Budget Standing Committee developed draft resolution of State Great Khural on revoking the provision and approved yesterday. 

Meanwhile, some MPs expressed their protest on the draft resolution to revoke the provision. Head of DP caucus D.Erdenebat highlighted: "-It is possible to solve the problem without revoking the provision due to the provision is quite significant. We should follow a policy to be independent. We should not give raw materials for free in order to take loans from abroad". 

Moreover, DP caucus in State Great Khural requested five days break on this issue. However, the request was not considered. 

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