Finance Minister with media

Ulaanbaatar /MONTSAME/ The Finance Ministry is working on financial matters of the reforms the government is running in Mongolia, a budget-finance reform group consists of the Ministry, Taxation office and delegations of regional state funds and financial institutions. These and many other issues presented the Finance Minister Mr Ch.Ulaan April 17 at a traditional meeting with the media. "Last year after the election the government for reforms received the finance ministry who had a 600 billion togrog deficit in the budget balance, a current revenue with one trillion 500 billion cut, a 15-percent inflation, a one trillion togrog debt of the Human development fund, a 700 billion togrog urgent debt and others," he said. For the time being, Mongolia has a 9,8 trillion togrog debt, and the ministry is doing all the best to increase investments and to lessen the debt, he said. By the first quarter of 2013, the ministry's revenue was poor in the investment. In 2010 it was 1,6 billion dollars, reaching 4,6 billion dollars in 2011 but decreasing to 3,8 billion in 2012. The ministry investigated this situation and considers that a law on investments, approved before the 2012 election, did not make the investment go down. "The government for reform has offered to be mutually beneficial, but look at the Oyu tolgoi project. It is not profitable for the Mongolians, and many sources have proved it. I think that we do not need the investors who ignore the above government's initiative," he said. Talking about the problems with the OT, Mr Ulaan said a working group, headed by the ministry's risks management dep. official, is working at the OT to run a documentation inspection "because the OT did not make clear how much money was spent for purchasing this or that equipment, and we still do not know why investments had grown up to two billion."When all financial documents are thoroughly inspected and confirmed, all the disputes over the extra financing will be completed," he said. The Minister also said a credit guarantee fund has been set up for the first time in Mongolia in order to ensure an implementation of parliament's decisions, to support small- and middle-sized business, to activate an employment and to create jobs. The state budget has given five billion togrog to the fund. The fund affiliated to the Financial regulatory committee (FRC), its board of directors is headed by the FRC's vice director Ts.Orkhon. There are other sources to finance the fund, said Ch.Ulaan. D.Enkhbileg