Source: Ardiin Erkh    Date: May 28, 2010

Mr. Arshad Sayed, resident representative of the World Bank in Mongolia, has told Deputy Prime Minister N.Altankhuyag that the annual International Monetary Fund has not been able to issue its annual review of the budget policy, and this may make it difficult for the Asian Development Bank, the Government of Japan and the World Bank to meet its commitments to its country. Though nothing official has been said, it is believed the delay has been caused by the proposed revisions to the budget.

Mr. Sayed felt the terms of the revision could trigger a sharp rise in the rate of inflation, which could go up to 20-30 percent by the end of the year. This might lead people to save in foreign currencies, which brings huge risks to the economy. He suggested that the Government put all additional revenue in Central Bank reserves.