During the short break of the Conference on Economy Policy, Rashid Sayed, World Bank Resident Representative in Mongolia, Justin Lin, Chief Economist of World Bank, made a press conference. They answered several question from media.
Q: Mongolia is not well integrated in the world economy. Therefore people think that this crisis has less effect in Mongolia. What will it be in our banking sector?
A: I agree that its direct effect is minor. But it has indirect effect. Due to the financial crisis world economy growth is decelerating. If this influences in the Mongolian economy, then it will surely influence in banking sector.
Q: How long the crisis will continue. How it will influence Mongolia?
A: It is hard to tell how long it will continue. I hope that the Governments of developed and developing countries will take effective measures. It can allow possibilities to get through it quickly. Also I am hopeful that the Mongolian Government will take it seriously. Moreover, if necessary, it is better to cooperate with international financial organization and get aid.
Q: Due to the crisis, share of major mining companies is falling. What will be our position in relationship with the investors?
A: Due to the decreased share price, fund that can be raised in the foreign exchange will be limited. But companies such as BHP Billiton and Rio Tinto have good capital reserve. Therefore, change of share price will not create big difference. When dealing with investors it is better to consider their long term capacity and their potential in introducing modern technology and know-how.
Q: Mongolian economy especially our budget is much dependent to the commodity price. What is the best way to solve this issue and what experience foreign countries have?
A: This was the main purpose and topic of this meeting. Due to the world economy crisis, there will be pressure in your economy. But there is an opportunity of getting through this crisis. Once again to repeat, first, Mongolia shall manage its mineral sector income effectively, second, strengthen its economy background and basement. If Mongolia can manage its mineral resource, then mineral resource will be your advantage. We also believe that this conference is an opportunity to convert the crisis into the advantage.