DRAFT LAW ON DEVELOPMENT BANK BACKED

Ulaanbaatar, Mongolia, /MONTSAME/ The cabinet has discussed a draft law on the Development Bank (DB), and decided to submit it to the State Great Khural, reflecting opinions pf the Ministers.
An investment from the government to be made for the industrial sector through the DB will stand at 16.7 billion by the end of 2010. It is expected that it is possible to increase the economic growth by one per cent in every investment of MNT 100 billion in case of making investments through the bank to the mining and its infrastructure sectors. The government will issue credit guarantee for the DB, and the bank will directly finance effective projects.
To be financed through the DB, the infrastructure and heavy industry are to have a great importance in intensifying the country's development, boosting the processing industry, refining upon the forms of the Gross Domestic Product.
Capital of the state-owned DB consists of the state budget and dividends of the state-belonging shares owned by jurudical persons on strategically important mineral deposits.
B.Khuder