What do politicians and investors think of Mongolia’s economic prospects now that copper prices have fallen to US$3,700 a ton and the global financial crisis is spreading to Asian markets and economies as well? Below are some opinions on the best measures that should be taken by the Government.

MP S.Oyun: We must reduce budget expenses and establish a risk fund. Copper plays a large role in our state budget. We cannot control the price fluctuation and when it falls too much we must use our risk fund. We cannot stay put until the Mining Law is finally amended, and must take measures to start mining work so that revenue is generated.
MP N.Batbayar: The fall in copper price is unlikely to affect our 2009 Budget or the general economy of Mongolia immediately. The budget expenses will be met by this year’s tax revenues. The negative effects will be seen in 2010, and there is every possibility that the children’s allowance will be cut.
Director of Apartment Financing Corporation J.Aldarjavkhlan: It is certain that the economy would slow down since copper price, Mongolia’s main financial source, is falling. This will affect all sectors and we need to reduce government expenses by strictly adhering to priorities. Building apartments must continue, even if the prices go up. We must end our absolute reliance on the mining sector and seek out new financial sources.
Head of the Mongolian National Mining Association Do.Ganbold: Our export revenues will decrease as the copper price falls, and all previous gains will be negated. Investments are decreasing because of the financial turmoil, and we must immediately eliminate the windfall profits tax to restore investor confidence and interest.

 

Source: en.news.mn