Mongolia names former finance minister as new PM

By bne IntelliNews July 11, 2016

The Mongolian People's Party (MPP), which won a landslide victory in parliamentary elections last month, has nominated former finance minister Jargaltulga Erdenebat as the new prime minister.

Mongolia’s parliament voted on July 8 to appoint Erdenebat, 42, who served as finance minister between 2014 and 2015. He vowed “economic stabilisation” and “fiscal discipline” “in close cooperation with international financial institutions”, the Financial Times reported.

Mongolia’s foreign debt has surged amid a fall in government revenues mainly because of a sharp decline in prices of coal and copper, the country’s main exports. The resource-rich country has been struggling to adapt to slowing growth in neighbouring China, which buys up nearly all of its copper, gold and coal.

MPP leader Miyegombiin Enkhbayar was appointed chairman of the parliament and will likely have a big hand in government affairs.

The MPP is taking back power from the Democratic Party after four years during which the economy has gone from booming to flat. Mongolia has borrowed billions of dollars in sovereign debt since 2012, resulting in a negative outlook from Moody’s rating agency. MPP has pledged to introduce investor-friendly policies in the country’s ailing mining sector and cut debt.

MPP, which has led the country for most of its quarter of a century as a democracy, has been credited with luring investors to Mongolia.

Related Articles

Mongolian Supreme Court rules against nationalisation of 49% in Erdenet copper mine

Mongolia’s Supreme Court has ruled against the government’s attempt to nationalise a 49% stake in Erdenet copper mine, industry sources told Reuters on December 8. ... ... more

Mongolia named among 17 nations on EU’s first ever tax haven blacklist

Mongolia has been listed on the European Union’s first ever tax haven blacklist among 17 countries including South Korea, Namibia, Panama, Trinidad & Tobago, Bahrain and ... more

Mongolia's Top 20 Index leads stock exchange benchmarks with 74% ytd gain

The Mongolia Stock Exchange (MSE) Top 20 Index is approximately up by 74% year-to-date, marking the largest gain among all benchmarks tracked by Bloomberg. ... ... more