The Asian Development Bank (ADB) President Haruhiko Kuroda said on Tuesday ADB will further strengthen its relations with Mongolia to support the country's efforts to meet the changing demands of a rapidly growing economy, according to a news release of ADB.

"We will continue to make poverty reduction the overarching goal of our operations in Mongolia, working closely with the government to ensure that ADB-funded projects are accessible to the poor," the news release quoted Kuroda as saying at a joint press conference with Mongolian Finance Minister Nadmidiin Bayartsaikhan.

During his first official visit to Mongolia since assuming the presidency of ADB in February 2005, Kuroda met with Mongolian officials, including Prime Minister Enkhbold Miyegombo, Central Bank Governor O. Chuluunbat, and Finance Minister Bayartsaikhan, said the news release.

They discussed a wide range of issues including development challenges for Mongolia, regional integration, donor coordination, and ADB's strategic priorities in the coming years.

Kuroda and Bayartsaikhan signed a loan agreement for a financial sector reform and governance program, through which ADB will help the Mongolian government develop a sound and broad-based financial sector. The program is expected to lay the foundation for robust private sector development as it will help reduce the cost of borrowing and expand access to credit, according to the news release.

During meetings with Mongolian officials, Kuroda said that one of Mongolia's biggest challenges is to broaden and sustain growth to and provide opportunities for the many poor people who have not yet benefited from the transition to a market economy.

ADB will work with the government to identify financing needs for infrastructure development, and to mobilize investments toward this end, he said.

Kuroda also said Mongolia can benefit substantially from regional economic integration as a member of the Central Asian Regional Economic Cooperation program which is supported by ADB.

Mongolia joined ADB in 1991 at the beginning of its transition to a market economy. Since then, ADB has approved 36 concessional loans to Mongolia totaling 616 million U.S. dollars and one private sector equity investment of 6.1 million U.S. dollars. It has also provided technical assistance grants totaling 67 million U.S. dollars.

Source: Xinhua