EBRD launches new strategy for Mongolia

By Ina Coretchi

The EBRD’s Board of Directors has adopted a new strategy for Mongolia, which reinforces the Bank’s commitment to further support the Mongolian economy and sets out the priorities for its activities in the country over the next three years.

The new strategy acknowledges the progress achieved in Mongolia from a number of structural reforms, such as price and trade liberalisation and privatisation, and outlines the transition challenges (enterprise restructuring, competition policy, banking, non-bank financial institutions & infrastructure reform)for further development of the Mongolian economy.

In the coming years the Mongolian government’s main priorities would be to facilitate
In order to promote the diversification of the Mongolian economy the EBRD will continue to support the development of the private enterprises in Mongolia by extending credit lines and providing equity investments to selected agribusiness, cashmere/textile, tourism and property businesses.

An important priority for EBRD in Mongolia will be to support the Bank of Mongolia in its efforts to consolidate and strengthen the country’s financial sector.

The EBRD will increase its engagement in the banking sector by providing new credit lines for on-lending to micro, small and medium-sized companies, as well as co-financing facilities and equity investments.

The EBRD will also support the development of non-banking financial institutions, such as microfinance institutions, leasing, insurance and pensions.

The Bank will promote sustainable development of the natural resources sector, which is of strategic importance for the country, and will support infrastructure, energy efficiency and renewable energy projects in Mongolia.

The EBRD will continue to pursue policy dialogue in Mongolia in areas of corporate governance, financial sector, mining industry and relations with investor community.

Since the beginning of the EBRD’s operations in Mongolia in 2006, the Bank has committed over €125 million across 28 projects in various sectors of the Mongolian economy, with total projects cost of €337 million.