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Mongolia to join EBRD as country of operations
Admission underscores Bank’s drive to shift operations further East
The EBRD is shifting the borders of its activities further east for the first
time, following acceptance by all of its shareholders to admit Mongolia as a
country of operations. The admission will allow the EBRD to start financing
projects in this vast, landlocked country of 2.8 million people bordered by
Russia and China.
An EBRD delegation led by Business Group Director Olivier Descamps will arrive
in Ulaanbaatar on 18th July to meet with Prime Minister Miyeegombyn Enkhbold,
and other government officials, and assess business opportunities in the
country. The head of the new resident office in Mongolia, John Chomel-Doe,
will accompany Mr Descamps.
The EBRD plans to work with the Mongolian government and the business
community, specifically with the aim of helping to finance the development of
private enterprise and the process of privatisation.
As in other Early Transition Countries (ETC) countries, SMEs and microfinance
will be a priority. Another key goal will be to strengthen the financial
sector. The Bank will also seek ways to help finance the improvement of
Mongolia’s infrastructure.
Dialogue with the government will aim to continue the process of reform and
liberalisation and to maintain progress in improvements to the investment
climate in Mongolia.
The EBRD is delighted to be able to start working fully with Mongolia. We see
Mongolia’s admission as a recipient country of the EBRD as a natural
continuation of the work the Bank started in central and eastern Europe 15
years ago, said EBRD President Jean Lemierre. Our experience and our expertise
will help move forward the process of economic and political transformation.
President Lemierre is expected to visit Mongolia in September.
In 2004 the Bank’s Board of Governors approved proposed changes to its 1990
founding treaty that would allow the Bank to finance projects in Mongolia. The
amendments were needed as Mongolia lies outside the Bank’s territory of
activities as set out in the treaty. Acceptance of the changes by all EBRD
members was completed on 14 July, 2006, such that the amendment can now enter
into force on 15 October, 2006.
As a prelude to its becoming a country of operations, the EBRD has already
been working with Mongolia to secure grants from donor countries to help
finance the transition to a market economy, including legal reform. The
Mongolian Cooperation Fund was set up in March 2001 with total funds from
donors of €10.3 million.
So far, the Bank has worked on 45 projects, committing 8.5 million of MCF
funds to provide technical support in such areas as financial institutions,
aviation, telecommunications and power.
Via its TurnAround Management Programme, the EBRD has also provided management
advice on restructuring and improving technical and financial performance in
various business sectors.
The EBRD already has a representational office in Ulaanbaatar and will have a
fully operational office by later this year.
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