The EBRD is shifting the borders of its activities further east for the first time, following acceptance by all of its shareholders to admit Mongolia as a country of operations. The admission will allow the EBRD to start financing projects in this vast, landlocked country of 2.8m people bordered by Russia and China.

An EBRD delegation met the Mongolian Prime Minister in Ulaanbaatar on 18th July to assess business opportunities in the country. The EBRD plans to work with the Mongolian government and the business community, specifically with the aim of helping to finance the development of private enterprise and the process of privatisation.

As in other Early Transition Countries (ETC) countries, SMEs and microfinance will be a priority. Another key goal will be to strengthen the financial sector. The Bank will also seek ways to help finance the improvement of Mongolia’s infrastructure.

“The EBRD is delighted to be able to start working fully with Mongolia. We see Mongolia’s admission as a recipient country as a natural continuation of the work the Bank started in central and eastern Europe 15 years ago”, said EBRD President Jean Lemierre who is expected to visit Mongolia in September.

As a prelude to its becoming a country of operations, the EBRD has already been working with Mongolia to secure grants from donor countries to help finance the transition to a market economy, including legal reform. The Mongolian Cooperation Fund was set up in March 2001 with total funds from donors of €10.3m.

So far, the Bank has worked on 45 projects, committing €8.5m of MCF funds to provide technical support in such areas as financial institutions, aviation, telecommunications and power. The EBRD already has a representational office in Ulaanbaatar and will have a fully operational office in place by the end of this year.