The political crisis has generated several demonstrations
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Mongolia's largest party, the MPRP, has nominated a new prime minister after it pulled out of the governing coalition last week, dissolving the Cabinet.
Miyeegombo Enkhbold, a 41-year-old former Ulan Bator mayor and the party's current chairman, had been considered the favourite for the position.
Parliament could vote on his nomination as early as Wednesday, MPRP secretary Otgonbayar said.
The political crisis in Mongolia has sparked days of public protests.
"Enkhbold's political experience is good," Otgonbayar told the French news agency AFP. "He's known as someone who doesn't talk much, but does the work."
He was nominated at a party conference by 187 votes to one.
His approval by parliament is likely as the MPRP is confident of securing a majority vote with the support of minority parties.
Mongolia's political crisis began last week when the MPRP pulled out of a coalition that had governed since 2004, citing slow economic growth, inflation and corruption.
Hundreds of Mongolians have protested against the move, calling for full political reform and blaming the MPRP for corruption and poor living standards.
MPRP member and former Foreign Minister, Moenkh-Orgil, has said his party aims to have a new Cabinet formed by the end of next week.
The MPRP holds 38 of the parliament's 76 seats. It therefore needs to attract the support of minor parties in order to form a majority, or to encourage at least one rival Democratic Party member to defect.
The Democratic Party holds 34 seats.