The Government has dismissed the head of the Development Bank’s representative managing council. Ch.Khashchuluun, who was appointed to the position on May 15, was dismissed last week. An official from the Finance Ministry has been appointed as an interim replacement.

One point of contention during Ch.Khashchuluun’s tenure was a proposed bond issue. At one point he said it would not be possible for domestic investors to purchase DB bonds. DB officials met with eleven banks and three law firms to prepare for a bond issue. Four banks and one law firm have agreed to issue the bonds on the Asian market.

The Government has the right to appoint managing officials of DB’s representative managing council, and the Finance Ministry has some say over DB’s bond issues.

Critics point out that the DB has not even started a USD 5 billion railway project, even though the Government has guaranteed financing. That is why the Minister for Roads, Transportation and Urban Development, Kh.Battulga, spoke out against the DB at last week’s Government meeting.

MP R.Amarjargal sent questions about the DB bond issue to Prime Minister S.Batbold last Thursday.

Some say the DB has not been able to work without political interference.