ULAN BATOR, Dec. 28 (Xinhua) -- The Mongolian government on Wednesday approved a detailed plan to revive the landlocked country's economy, which has been mired in a severe downturn.
Under the plan approved during a cabinet meeting, the Mongolian government is expected to start negotiations with other countries, especially neighboring ones, on long-term loans with low interest rates to reduce its debt burden and refinance its current loans.
Also, the Mongolian government and the Bank of Mongolia, the country's central bank, will determine terms to extend or refinance a 580 million U.S.-dollar loan taken out by the Development Bank of Mongolia, which is due in March, and international bonds due in January 2018.
Now, Mongolia is facing a severe economic crisis due to the downturn of the global commodity market and its heavy debt repayment starting in March.
The cash-strapped country is negotiating with international financial institutions such as the International Monetary Fund on saving the loan from possible default next year.
Recently, Mongolian Parliament Speaker Miyegombo Enkhbold led a delegation of the country's top officials to wealthy Gulf countries, such as Saudi Arabia, Kuwait and the United Arab Emirates, and Mongolia's neighbor Russia, to seek financial assistance.
Under this economic revival plan, the Mongolian government will also try to diversify its mining-dependent economy and improve the quality of veterinary services for its 61.5 million livestock herds and export meat abroad.
In the past, the frequently changing government rules and laws on foreign investment and mining have scared away international investors.
According to the new plan, the Mongolian government will also restore investors' confidence in the country and reduce bureaucratic procedures to obtain business licenses.
However, some analysts doubted the government's ability to follow through with the plan as in Mongolia, laws and regulations are often not fully implemented by authorities.
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