On May 21, President Elbegdorj met with Mr. Arshad Sayed, World Bank Country Manager and Resident Representative.

The sides exchanged views on a number of issues including banking reform, fiscal reforms, delegating more power to local governments, judicial reform program and others.

The same day, First Deputy Foreign Minister N. Altankhuyag met with Arshad Sayed. They shared views on the latest situation in Mongolia’s economics, on overcoming the crisis, as well on measures needed in the banking and financial sector.

Arshad Sayed discussing economics with President Ts.Elbegdorj

Mr. Sayed said the International Monetary Fund’s (IMF) representatives have still not reached a conclusion on Mongolia’s budgetary policy through the fifth evaluation, “that is why the government of Japan, Asian Development Bank (ADB) and WB do not have an opportunity to carry on further preplanned steps to render support to Mongolia’s budget”.

They pointed out that the inflation rate is currently 8-9 percent in Mongolia, but it might reach 20-30 percent by the end of this year after a large amount of money is issued through the budgetary clarification. “When inflation is high, depositors tend to exchange Mongolian Togrogs for foreign currency. This could cause a great danger to the economy of the country, leading the macroeconomics into a full crisis,” the sides emphasized.

Sayed suggested that Mongolia should reserve surplus money of the budget and limit budgetary expenditures in order to maintain economic stability, in accordance with the IMF’s recommendation.

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