Parliament approves revised law on Development bank

Ulaanbaatar /MONTSAME/ Parliament approved a revised law on Development Bank of Mongolia at today’s plenary session. The Development Bank of Mongolia runs activities to finance projects and programs targeted to economic development of the country.

However, the bank has been too dependent on politics and lacked in professional personnel and ran improper activities, including financing social projects and programs which had low economic efficiency.  Therefore, the Government developed the revised bill to correct errors and improve the bank’s activities.

The International Monetary Fund recommended to add 13 provisions to the bill and MPs supported it. The proposals included banning Development Bank to have savings from citizens and financing projects and programs jointly with foreign and domestic investors. Members of Board of Directors of the bank should meet criteria to not to have not held political office for the last five years and members can be re-elected once, according to the revised law.

The revised law will be effective on April 01 of this year.