Parliament yesterday approved the draft law on establishment of the Development Bank to be responsible for financing large projects and programs passed by Parliament. Its capital would come from the budget that would allocate a certain percentage of the mineral resources income for this purpose. The 2011 budget has already earmarked
MNT16 billion toward the bank’s initial capital. This amount will be increased every year until the capital base reaches MNT100 billion.
The Bank will be 100% state-owned and half its managing officials would be Mongolian, while a team of experienced foreign professionals will be in charge of management. The Bank will not operate savings accounts and will not issue small loans. The Government will guarantee all its large loans.