Development Bank to be Established
On Tuesday, an irregular cabinet meeting made a decision to set up a developmental bank of Mongolia and then approved a rule of this bank. A Head of the National Committee of Development and Reform (NCDF) Ch.Khashchuluun, and a head of the State Property Committee (SPC) D.Sugar were ordered to start activities of the bank within the third quarter of 2010 and to build through a selection an independent and skillful team to manage the bank.
The developmental bank will have an responsibility to carry out financial intermediation at strategic importance places and will have basic purposes--to provide a certain sphere with middle- and long-term financial resources, widen collaboration with international developmental and financial organizations, attract domestic and foreign investments into the economic circulation.
It is considered possible to increase the economic growth by one percent per MNT 100.0 billion by making investments through the developmental bank. Infrastructure to be established with the bank's financing and heavy industry objects are important in accelerating the state development, boosting processing industry, replacing imported products, and in refining upon the structure of the Gross Domestic Product.
The Premier warned authorities of the NCDF and SPC that the bank must be managed by internationally accepted professional skillful team under a correct management.
The developmental bank will have an responsibility to carry out financial intermediation at strategic importance places and will have basic purposes--to provide a certain sphere with middle- and long-term financial resources, widen collaboration with international developmental and financial organizations, attract domestic and foreign investments into the economic circulation.
It is considered possible to increase the economic growth by one percent per MNT 100.0 billion by making investments through the developmental bank. Infrastructure to be established with the bank's financing and heavy industry objects are important in accelerating the state development, boosting processing industry, replacing imported products, and in refining upon the structure of the Gross Domestic Product.
The Premier warned authorities of the NCDF and SPC that the bank must be managed by internationally accepted professional skillful team under a correct management.
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