March 28 (Bloomberg) -- Mongolia is planning to ease restrictions on foreign investment to encourage more private companies to do business while keeping restrictions on state-owned groups, Prime Minister Norovyn Altankhuyag said.
The planned amendments would remove a requirement for parliament to review minority investments by non-state-owned companies, the prime minister said. Parliamentary review of all investments by state-owned or associated companies would remain.
The existing law “imposed barriers to foreign investment,” Altankhuyag said today at a conference attended by Mongolia’s diplomatic community. The changes will be considered during the spring session of parliament, which begins on April 5, he said.
The changes may boost investor confidence in the wake of protracted disputes with key Mongolia investors, including Rio Tinto Group, the world’s second-largest mining company.
Mongolia wants to create a new law on investment that will stabilize tax rules in order to prevent frequent rule changes that can create uncertainty, the prime minister said.
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