EBRD President: private sector needs greater role in Mongolia

By Svitlana  Pyrkalo
@pyrkalo

The President of the European Bank for Reconstruction and Development (EBRD), Sir Suma Chakrabarti, will visit Mongolia between 30 August and 2 September, to emphasise the Bank’s support for the diversification of the country’s economy and the development of the private sector. He will also underline the need for sustainable growth and the transparent management of natural resources, and the EBRD’s role in addressing these challenges, including assistance in building up institutions and developing policies.

The goals are set out in the EBRD’s Mongolia country strategy for 2013-16, recently approved by the Bank’s Board of Directors. Sir Suma will meet with the President of Mongolia, Mr Ts. Elbegdorj, and will emphasise the EBRD’s commitment to the country’s sustainable development.

The EBRD President will also meet the Speaker of the State Great Khural, Mr Z. Enkhbold, and other representatives of the Government of Mongolia.

President Chakrabarti said ahead of his visit: “The EBRD has been investing in Mongolia since 2006. We are the largest institutional investor in the private sector, with US$ 1 billion of investments in private companies from small and medium-sized cashmere manufacturers to large local agribusiness and mining corporations. In the current global economic climate, we believe Mongolia needs to encourage private firms to invest in all sectors, from infrastructure to natural resources. A stable and predictable business environment is crucial for all investors, domestic and foreign.”

The EBRD President will also meet business clients, and will participate in a signing ceremony with Khan Bank for a financing package of US$ 25 million aimed at Mongolian small and medium-sized enterprises.

Apart from lending and equity investments, the EBRD runs a Small Business Support programme – supported in Mongolia by the EU, Japan, Luxembourg and other donors – which helps growing enterprises through the provision of expert advice.