Chultem Ulaan, Minister of Finance, discusses Mongolia’s exceptional economic growth and investment potential.
European Times: Mongolia aims to triple its government revenues over the next five years and build a sustainable economy with lines of credit for investors. How is the Ministry of Finance contributing to this effort?
Chultem Ulaan: Mongolia’s economy is expected to grow by 14% this year and to continue with double digit growth in the medium term. The Ministry of Finance has three main tasks in securing this growth: establishing a favourable environment for business, stimulating growth, and ensuring macroeconomic stability. Our focus at the moment is to finance infrastructure and economic projects through budget investment and Chinggis bonds. Our most important projects are Oyu Tolgoi and Tawan Tolgoi.
European Times: What are your main challenges?
Chultem Ulaan: Some of the challenges are external: the global economic crisis and the economic slowdown in our neighbours in the region. Because of these problems, our export earnings have dropped, for example for our minerals exports. On the other hand, we have reduced our inflation rate from 14% to 10% and should reach single-digit inflation by the end of 2013.
European Times: Are you partnering with EU institutions?
Chultem Ulaan: The European Bank for Regional Development (EBRD) and Bank of Mongolia have been working well together for some time and their partnership has resulted in around 56 private-sector projects to date. We will continue to encourage EBRD to finance private-sector projects, particularly in the mining and manufacturing sectors.
European Times: What is your message to the international community concerning investing in Mongolia?
Chultem Ulaan: First, Mongolia is a country with an exceptional natural resource: our land, which covers an area three times that of France. In fact, Mongolia is number one in the world in land per capita. Secondly, Mongolia has vast minerals resources, including all the elements on the periodic table, and is number one in the world in coal per capita. Last but not least, our country has spectacular scenery as well as our famous horses, making Mongolia very attractive for tourism. Mongolia has all the right conditions for fast-paced development. The World Bank has estimated that the Mongolian economy will achieve double-digit growth in the coming decade. Foreign investors are protected by law and tax rates are business-friendly. I invite all international investors to come to Mongolia and see for themselves all the many opportunities awaiting them here.
