A recent meeting of the Financial Stability Committee concluded that the best way for the Government to secure capital would be to sell medium- and long-term bonds locally, instead of going to the international market. This will help mop up funds accumulated in domestic commercial banks and have the added benefit of easing the pressure of foreign debts, and will ensure economic growth. The Central Bank will help the Ministry of Finance to prepare for the bonds issue.
The meeting called for closer coordination among the Ministry of Finance, the Central Bank, and the Financial Regulatory Authority (FRA) to facilitate correspondence between monetary and fiscal policies and to plan more efficient ways of financing major infrastructure projects. A joint working group was set up to recommend how this can be done. The National Development and Innovation Committee will also be represented in the group, to help formulate a proper macro-economic policy.
The Central Bank and the FRA would from now on monitor the financial activities of non-banking financial organizations to enforce provisions of the law against money laundering and terrorism financing.
The meeting was attended by, among others, Central Bank President L.Purevdorj, Minister for Finance S.Bayartsogt, FRA Chief D.Bayarsaikhan, Chief of Monetary Policy and Research Board D.Boldbaatar, and Chief of the Economic Policy Board of the Ministry of Finance B.Batbayar.
Source: Udriin Sonin, Ardiin Erkh
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