May 23, 2018

Mongolian Economic Forum 2018 concludes


President of Mongolia Kh. Battulga opened dialogues on the second day of Mongolia Economic Forum 2018 (MEF) with a speech. He noted that if Mongolia  doesn’t adopt policies aligned with geopolitical trends, Mongolia won't be able to attract large-scale foreign investment. President Kh. Battulga announced that Mongolia will soon establish a free-trade agreement with the Eurasian Customs Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and the Russian Federation. According to the president, there will soon be an opportunity for Mongolia to conduct customs tax-free foreign trade with these five countries. President Kh. Battulga also said that he hopes for collaboration with the Shanghai Cooperation Organization to be further strengthened by the end of 2018.     
Rio Tinto’s Chief Executive of Copper and Diamonds Arnaud Soirat delivered a speech as an honored guest for the second day of MEF 2018. He stated, “Oyu Tolgoi LLC has invested seven billion USD since 2010. There are numerous opportunities in Mongolia. If we can cooperate effectively, Mongolia will realize its development goals with its partners. After the Oyu Tolgoi underground mine construction, we will have invested a total of 12 billion USD, an amount more than Mongolia’s annual GDP. Oyu Tolgoi is Rio Tinto's youngest copper mine, and has become the mine with the best indicators in terms of safety. International organizations greatly appreciate agreement transparency. We will invest one billion USD annually in the underground mine and introduce new skills and expertise to Mongolia. Rio Tinto could be a good long-term partner.”   

Keywords: economic growth, PPP, MEF 2018   Today /page A2/

Insurance funds to be reviewed


During a meeting of Parliament’s Social Policy, Education, Culture and Science Standing Committee, the 2017 operations report of the National Council of Social Insurance was reviewed. According to the report, the monetary assets of health and social insurance funds haven’t been properly managed and a large amount of assets have been placed in withdrawal accounts at commercial banks. It is estimated that the funds have faced interest income losses valued at 10.3 billion MNT by not being placed in savings accounts. The standing committee members agreed to form a new task force to carefully review the operations of insurance funds.

Keywords: social insurance, Parliament   The Official Gazette /page 2/ 


Monetary policy supported economic growth in 2017


As requested by Bank of Mongolia, Mongolia’s Economic Research Institute (ERI) conducted an independent analysis of the central bank’s monetary policy in 2017 and its outcomes. On May 22, ERI presented the results of its analysis and held a discussion with economists and experts. According to the report presented by Director of the ERI G. Bumchimeg, the central bank’s lowering of the monetary policy interest rate by three percentage points in 2017 boosted economic recovery. Positive economic indicators, such as the balance of payments surplus and the increase in foreign currency reserves helped to stabilize the tugrug’s exchange rate.

Keywords: Bank of Mongolia, Economic Research Institute   Today /page 1/

online story  

Orders for Mongol Basalt’s IPO surpass expectations


Orders for the IPO to be released by Mongol Basalt JSC, an insulation material manufacturer, have reached 7.9 billion MNT, exceeding projections by 24 percent. The company plans to raise 6.4 billion MNT in capital from its IPO offering. According to Bumbat Altai, the underwriter for Mongol Basalt, the number of orders has reached 1,628. Mongol Basalt's IPO order placement will close on May 23.         

Keywords: Mongolian Stock Exchange, manufacturing

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The American Chamber of Commerce in Mongolia · 8F Naiman Zovkhis Building 21 Seoul Street · Ulaanbaatar, 01 14251 · Mongolia