May 28, 2018

Parliament reviews a new children's welfare program and state debt


During its regular session on May 25, Parliament approved the 2019 budget framework statement and 2020-2021 budget projections. According to the approved 2019 budget framework, state revenue is projected to total 8.8 trillion MNT and expenditure will be an estimated 10.9 trillion MNT. GDP growth is forecasted to reach eight percent in 2019, and six percent in 2020 and 2021. Consolidated proposals from Cabinet and the President of Mongolia regarding monetary allowances for children were discussed. MPs J. Munkhbat and B. Bat-Erdene stated that allowances should be given to all Mongolian children, but the majority of MPs voted to provide allowances to 80 percent. Minister of Finance Ch. Khurelbaatar noted, “Economic growth is continuing and tax income and foreign currency reserves are increasing due to good policies, but we still have pressing problems with debt repayment. In the last seven months, nearly 2.82 trillion MNT was paid for debt repayment. It is estimated that another 1.4 trillion MNT for bond debt and interest will be paid this year, and more than 700 billion MNT will be paid in 2019.”   

Keywords: social welfare, GoM, 2019 state budget   National Post /page 2/


Sharp Corporation to build a solar power plant in Mongolia


Japanese electronics giant Sharp Corporation plans to build a 20 MW solar power plant in Darkhan-Uul Province, in cooperation with Darkhan-Selenge Electricity Distribution Network. According to Xinhua News Agency, construction of the plant will begin in the second half of 2018 and will be complete by the third quarter of 2019. Mongolian senior engineer B. Batjargal said that the solar power plant will reduce carbon dioxide emissions by 25,000 tons and will help to save 355 million liters of water.      

Keywords: : renewable energy, Japan, green development   Today /page B1/

2.1 billion USD deal made with Rosneft for oil imports


According to Reuters, Rosneft Oil Company, one of Russia's biggest companies, reached a deal with Mongolia on fuel supply during the International Economic Forum held in St. Petersburg, on May 24 to 26. Rosneft established long-term commercial contracts valued at 2.1 billion USD with Mongolia’s oil and diesel importers. As reported by the Mineral Resources and Petroleum Authority, Petrovis, Magnai Trade, Sod Mongol, and Tes Petroleum signed five-year contracts with Rosneft on petroleum product trade.       

Keywords: petroleum, Russia   Today /page B1/

online story  

MEARC: MNT appreciation could impact monetary policy


Mongolian Economic Analysis and Research Center (MEARC) concluded that the estimated increase of inbound foreign currency could result in the appreciation of the MNT and that the central bank could tighten monetary policy as a result. With the implementation of the International Monetary Fund’s extended fund facility (EFF) program, the inbound foreign currency will amount to 5.5 billion USD, as reported by Cabinet. Financing under the EFF will reach 836 million USD in 2018. Following the Bank of Mongolia's monetary policy decision in March, the MNT has appreciated by 0.6 percent. The Bank of Mongolia announced that its next monetary policy decision will be issued on June 22.                   

Keywords: Bank of Mongolia, policy interest rate, exchange rate

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