Mongolia and Development Partners` Consultative Meeting held

Zuunii Medee

2016-12-06 11:37 GMT+8

Government of Mongolia and Development Partners` Consultative Meeting under the theme of Partnership for Sustainable Development was took place on December 2, 2016 in Ulaanbaatar city, Mongolia. 

POSITIVE FORECAST AND DEVELOPMENT PARTNERS

Ambassadors and senior officials of 21 countries, delegates from 19 international financial institutions as well as Mongolian government officials have attended the meeting this year. The Government officials introduced the current economic situation of the country and its long-term policy and plan to the development partners. Prime Minister and Minister of Finance highlighted that the future of Mongolia seems bright due to long-term economic and social policies become sustainable. Further, Prime Minister noted that we have an opportunity to restore economic growth by implementing frequent activities under the Government action plan and program on overcoming economic difficulties. He added that the Government is working to intensify Oyu Tolgoi`s underground mine development and commence the major projects of Gatsuurt and Tavantolgoi in 2017. Following, Minister of Finance B.Choijilsuren gave information on how to improve fiscal discipline of Mongolia. Budget deficit is projected to reach equal to 9.1 percent of the country`s GDP in 2017, 7.5 percent of GDP in 2018 and 5.5 percent of GDP in 2019 while the Government has planned to eliminate the budget deficit by 2020. The Government officials introduced positive economic forecast to the development partners including that the private sectors and the Government will attract US$ 2-3 billion foreign investment annually and increase the workplaces by 20 thousand annually. Development partners agreed the conclusion that the Mongolia is expected to have positive social and economic future for the long-term.

MONGOLIA NEEDS INSTITUTIONAL REFORM

Delegations from the International Monetary Fund (IMF), World Bank, United Nations, Asian Development Bank, European Union, The European Bank for Reconstruction and Development, International Finance Corporation and the Swiss Cooperation Office have attended the meeting and expressed their views. Neil Saker, Resident Representative for Mongolia, IMF stated "Mongolia should be able to take risks and attract more foreign investors. In regards, Mongolia needs policy protection and institutional reform".

WORKING GROUP OF IMF WILL VISIT MONGOLIA TO DETERMINE THE AMOUNT OF LOAN

The meeting organizers provided information to the media on possibilities to overcome economic difficulties for short-term and how to attract financial resources. Deputy Prime Minister Kh.Bulgantuya said "IMF successfully provided Stand-By Arrangement (SBA) to Mongolia twice. IMF carefully monitored the country`s situation in Oct, 2016. Working group of IMF will visit in Mongolia in Dec, 2016 or Jan, 2017 to determine the type of aid and amount of the loan.

Bert Hofman, Country Director for Mongolia, the World Bank said " The government is facing short run challenges and we believe that the government made very concrete plan which is very broad and touches upon many things. The IMF support for the government’s program is bit more narrow under discussion which is currently ongoing. It is about what is exactly IMF supported program going to look like as a part of government’s program.

The IMF usually focus on macroeconomic side, fiscal targets and on financial sector policies and financial policies, but all of development partners such as World Bank intends to join the IMF in a broad correlation that we believe is necessary to support the government of Mongolia now. Also, we definitely see bilateral organizations such as China, Japan and others to be part of that broad correlation that would help Mongolia through difficult times” highlighted by the Bert Hofman, Country Director for Mongolia. 

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