EBRD TO INVEST 50% MORE IN MONGOLIA

2008-09-22 13:58:02

Ulaanbaatar, /MONTSAME/ The European Bank for Reconstruction and Development (EBRD) plans to boost investment in Mongolia by almost 50 percent this year, in industries ranging from retail to mining. The bank will increase spending here to US $70 million this year, and forecasts another increase to US $140 million in 2009. John Chomel-Doe, the bank's director for Mongolia, said during the Euromoney Mongolia Investment Forum last week in Ulaanbaatar, "This is a good demonstration of the potential Mongolia has for private-sector investments."
EBRD is an institution owned by 61 countries, including the U.K., Germany, Australia and Mongolia, and two intergovernmental institutions, the European Community and the European Investment Bank. It started investing in Mongolia last year, with over US $40 million, and has to date invested in businesses that include a supermarket chain, a bank, a drilling company, a coal mine and a fruit-juice producer, Chomel-Doe said, declining to identify the companies.
Mongolia's "growth sectors" include retail distribution, beverages, real estate, tourism, textiles and mining. Cement, renewable energy and financial industries are also likely to generate high growth, he said, adding that "many of them are in our pipeline". The bank is seeking increasing investment in Mongolia because the nation has an active democracy, he said. Other positive factors include a fully privatized banking sector, "one of the best tax regimes for business and individuals", a free press and a private sector that accounts for 80 percent of the country's economy.
S.Batbayar
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