Supporting local money and capital markets in Mongolia www.finchannel.com
The FINANCIAL -- The European Bank for Reconstruction and Development (EBRD) has supported the Mongolian Ministry of Finance (MoF) in developing a money and capital markets strategy and implementation road map, which form part of the MoF`s Financial Sector Strategy 2025.
The project identified the barriers to money and capital market development in Mongolia and provided a set of recommendations, along with a roadmap for their implementation. The project ended with a final workshop in Ulaanbaatar in December 2017 that was attended by representatives from the MoF, Bank of Mongolia (BoM), Mongolian Stock Exchange, Mongolian Securities Clearing and Settlement Corporation, International Finance Corporation and local commercial banks.
Irina Kravchenko, Head of the EBRD Resident Office in Mongolia, said during her welcome speech: “We are very pleased to assist the government in developing their strategy for the money and capital markets, which is essential for establishing a well-functioning financial system, strengthening investors’ confidence and supporting economic growth.”
Hannes Takacs, EBRD Associate Director, Local Currency and Capital Markets Development, noted during the workshop that the EBRD is welcoming Mongolia’s efforts to develop sound money and capital markets: “The EBRD is ready to further support Mongolia in attracting foreign investors to the local capital market by improving market transparency, market operations and investor protection.”
Aude Pacatte, Head of Local Currency Portfolio Management at the EBRD Treasury, said: “The roadmap for the development of money and capital markets is an important milestone, which we very much hope will be followed up with pragmatic implementation of necessary reforms. The EBRD is looking forward to continuing to work with the authorities and market participants to support and participate in the next phase of market development.”
The Financial Stability Council of Mongolia met on 9 February 2018 and discussed the final deliverables, which should be approved jointly by the BoM, MoF and Financial Regulatory Commission, according to the EBRD.
Mongolia has been an important partner of the EBRD and the Bank has invested €1,389 million there since EBRD operations began in Mongolia. With regard to technical cooperation for the capital market, the EBRD’s Local Currency and Capital Markets Development team has deepened its partnership with the MoF over the past several years and has worked on various topics including initial public offerings of state-owned enterprises.
Improving access to finance through the development of money and capital markets is one of the priorities of the Bank’s strategy for Mongolia. The Bank is currently discussing several follow-up projects with the Mongolian authorities to continue the fruitful cooperation in developing the overall financial markets.
Published Date:2018-03-14