Cabinet Meeting discussed the issues of Budget of Mongolia in 2010, State Monetary Policy and main directions of developing economy and society, and presented these documents to the Speaker of the State Great Khural. President of Mongol Bank L.Purevdorj has more on state monetary policy.
Q: What monetary policy will be pursued in 2010? What are the main qualities?
L.Purevdorj: It has two main qualities. Prior to all, it will reduce the pace of economy downfall and encourage growth. We planned to increase the economy growth to 7.4%. within the framework of the plan, the following measures including holding inflation at the level of 8% in maximum, sustain stability of domestic currency rate and increasing foreign currency reserve, will be taken. We will focus on optimizing the current inadequacy of credit, ceasure of bank loan giving and timidity of credit taking. Secondly, banking sector is most severely affected by the financial crisis and economy recession. The state monetary policy will focus on overcoming credit crunch, relieving banks from “bad” loans and recovering banking sector. In order to achieve these targets, we need to increase discipline and transparency in the financial sector, funding and strengthening banks’ capacity. Read the rest of this entry »