Minister of Economic Development had open discussions with the media

Feb 7 • Government, News • 830 Views • No Comments on Minister of Economic Development had open discussions with the media

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In open discussions, the Minister of Economic Development, N.Batbayar provided detailed information on “Chinggis Bond” which is considered to be leverage of economic development and has answered the questions from journalists.  The following improvements made and development opportunities have been opened from “Chinggis Bond” issuance:
1. The amount of net international assets hiked by 2 times and created more stable guaranteed economic environment.
2. it created conditions to keep stable exchange rate and thus stabilized the inflation expectations for the first time over the last 5 years.
3. It led to reduce the Central Bank/s policy rate, expand money supply and create opportunities for further economic intensification and space.
4. Alongside with the above mentioned, the sources of financing will be widened in the economy.
5. Social Insurance Fund will be monetized and the implementation of Personal Retired System will be ensured.
6. It created economic condition to implement mortgage system in real term.
7.  upon implementation of above mentioned two measures, long term stable financing sources will be created in financial sector and it will be guaranteed funding and thus in turn financial cost of domestic economy will be reduced.
8. This will be reflected as declined interest rates of banks for individuals and private sectors and extended period of the lending in the swiftest ways.
9. It continues to reduce inflation cost and expectations and will have huge impact on economic stabilization and led to growth of medium and low level income people.
10. The preparation for huge construction started quickly soon after the proceeds from Chinggis Bond materialized in Treasury Account and construction will be commenced without any delays in booming economic activity period so as the benefits of the bond are being actualized.

Government decided to invest 300 million US dollars for a 1300 km road to connect aimags Dornogobi, Dundgobi, Dornod, Umnugobi, Bayankhongor and Khuvsgul to Ulaanbaatar City and by the year of 2015 all centers of all provinces will be connected with paved roads. Also all province centers and most of soums will be connected with power lines. Within this framework, a new power plant to construct will be staring based on three mines of Tavan Tolgoi, Shivee Ovoo and Baganuur.

There is also a project for a 276 km road between Tavantolgoi and Gashuunsukhait that has been earmarked for an 800 million US dollar investment. The Government will cover half of the investment from bond assets.

200 mln of the bond money will be used for 3 new aircraft s for MIAT, which requested by Road and Transportation Ministry.

The Bond’s distribution will be also shared to Capital city’s improvement, for instance in Ulaanbaatar three big projects are planned to be implemented.  “Street” project- urban planning in center of the city project and to establish micro centers in Ger district and the third one is to construct 122 km new highway.

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