Mongolia's new Prime Minister backs responsible fiscal policy on his first full day in office

October 30, 2009

Ulaanbaatar, October 30, 2009 - Mr. Sukhbaatar Batbold, Mongolia’s new Prime Minister, placed his full support behind the government’s economic reform program at this morning’s technical meeting (TM) organized by the World Bank.

Mr Batbold’s support was welcomed as attendees at the TM were quick to praise the Mongolian government’s response so far to the recent economic crisis; a response that has lowered inflation and restored the fiscal balance.

With financial support and encouragement from external partners, the Mongolian government will continue to put in place domestic fiscal and financial policies. These policies will continue to improve Mongolia’s ability to better withstand future economic shocks.

Economic reform is essential in Mongolia as the economy’s strength is highly interlinked with global mineral prices. This trend will continue as new major mining deposits are developed such as Oyu Tolgoi.

The Government economic reform program includes two new fiscal laws: The Fiscal Stability Law and the Integrated Budget Law, these laws are essential in the development of Mongolia’s legal framework.

Cabinet and the Central Bank of Mongolia presented to external partners three key areas of reform at the TM: social welfare, mining and the banking sector.

External partners strongly supported the good progress that the Government has taken in recent months to address the crisis and to implement Mongolia’s reform agenda. They reiterated the need to maintain recent momentum on reforms, and to use the opportunity to put in place reforms that will help the country to better with withstand future economic shocks. The partners also stressed the need to focus on the poor and disadvantaged. 

The twice yearly technical meeting is attended by representatives of Government, the Parliament, and external partners. The meeting was open to media.

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