At a special meeting
yesterday the Government took the formal decision to set up a development bank
and also adopted a set of directive principles that would govern its work. The Head
of the National Committee of Development and Reform, Ch.Khashchuluun, and the Head
of the State Property Committee, D.Sugar, were given the responsibility to get
the bank working within the third quarter of 2010 and to select a team of
qualified and independent professionals to run it.

The bank’s main job will
be to act as the financial intermediary in business projects of strategic
importance, to provide middle- and long-term finance, to widen collaboration
with international aid and financial organizations, and to attract domestic and
foreign investment in viable projects.
                

The bank is likely to
concentrate on infrastructure and heavy industry, especially processing units.
Prime Minister S. Batbold has made it clear that the bank must be managed by an
internationally acceptable team of professionals.