Ulaanbaatar
Neil Saker: IMF is cautious about investment environment worsening
Politics
Ulaanbaatar /MONTSAME/ The International Monetary Fund Executive Board has postponed making a final decision on its Extended Financial Facility (EFF) in Mongolia. The delay is caused by a parliamentary resolution clause on currency transmission of large-scale projects through Mongolian banks. The Executive Board was expected to make the final decision during their meeting last week.
Today, on May 02, IMF Resident Representative Neil Saker gave explanations regarding the issue during a press conference at the State House. He said that the EFF has two main goals, including overcoming economic difficulties and creating a policy foundation that ensures economic growth in the long term. Policy measures will be largely implemented on budget. The IMF backs the Government plan to reduce budget deficit, lowering it to 10.5 per cent of GDP this year and to have a positive balance by the beginning of 2020.
Reporters asked him why the IMF does not support parliamentary resolution clause to make mining companies like Oyu Tolgoi to pass their money through Mongolian banks and whether the Fund considers it proper to change or cancel the clause.
“- The IMF cannot express its position on an agreement by the Mongolian government established with a certain company. However, we are cautious that the investment environment possibly could get worse in connection with the Parliamentary resolution clause. Generally, the investment environment of Mongolia should create conditions that as many foreign companies as possible can make investment. An IMF working group is now studying what impacts the measure (the clause) could give at the macroeconomic level. Therefore, I cannot make any comment on it” said Mr Neil Saker in his answer to the questions.
He also noted that the issue would be resolved within a short time and the Extended Financial Facility would be approved in the coming 2-3 weeks.
Today, on May 02, IMF Resident Representative Neil Saker gave explanations regarding the issue during a press conference at the State House. He said that the EFF has two main goals, including overcoming economic difficulties and creating a policy foundation that ensures economic growth in the long term. Policy measures will be largely implemented on budget. The IMF backs the Government plan to reduce budget deficit, lowering it to 10.5 per cent of GDP this year and to have a positive balance by the beginning of 2020.
Reporters asked him why the IMF does not support parliamentary resolution clause to make mining companies like Oyu Tolgoi to pass their money through Mongolian banks and whether the Fund considers it proper to change or cancel the clause.
“- The IMF cannot express its position on an agreement by the Mongolian government established with a certain company. However, we are cautious that the investment environment possibly could get worse in connection with the Parliamentary resolution clause. Generally, the investment environment of Mongolia should create conditions that as many foreign companies as possible can make investment. An IMF working group is now studying what impacts the measure (the clause) could give at the macroeconomic level. Therefore, I cannot make any comment on it” said Mr Neil Saker in his answer to the questions.
He also noted that the issue would be resolved within a short time and the Extended Financial Facility would be approved in the coming 2-3 weeks.
B.Ooluun
