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President of the European Bank for Reconstruction and Development (EBRD) visited Mongolia this week. Sir Suma Chakrabarti met with the Prime Minister of Mongolia, and with the President.

The EBRD has contributed EUR 1.7 billion to Mongolia’s development and promotion of the Mongolian private sector over the past 20 years. EBRD and Mongolia have jointly developed a cooperation plan laying out efforts to promote economic growth and diversification in Mongolia for years to come.

EBRD is currently providing assistance with several projects in Mongolia, including projects in areas such as electricity supply, sewage capacity and treatment, public transportation and improvement of public utility capability in general.  EBRD has budgeted up to 250 million Euro for these projects. Going forward EBRD is expected to increase support for development of agriculture and tourism.

Mongolia and the EBRD have jointly signed a USD 300 million agreement for the financing of infrastructure development, including construction of a road from Ulaanbaatar to Darkhan. Other projects include Energy development and a new green apartment initiative.

Also this week, the Mongolian Parliament passed a new budget for 2020. The budget projects revenue totaling approximately 11.8 trillion MNT. Budget expenses are set at 13.9 trillion, for a budget deficit of 2.1 trillion. The budget calls for the government to make efforts to enforce budget management, by promoting growth and decreasing deficit spending.

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