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Daily NEWSWIRE
October 13, 2016
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Government

Mongolia requests USAID programs and projects to be continued 

Summary: Yesterday, Member of Parliament and Chair of the Mongolian-American Parliamentary Caucus G. Zandanshatar, the Vice Chairman and Member of Parliament L. Oyun-Erdene and Member of Parliament A. Undraa met with the Principal Deputy Assistant Secretary (PDAS) of State Susan Thornton and the Ambassador of the United States of America to Mongolia Jennifer Zimdahl Galt. At the start of the meeting, G. Zandanshatar expressed his gratitude for the implementation of programs aimed to stabilize the operations of the government and to strengthen good governance through the Agency of International Development and for all the assistance provided by the USA. G. Zandanshatar stated that, “The decision to stop programs implemented in Mongolia by the United States Agency of International Development (USAID) was made in 2012. At that time, the Mongolian economy was experiencing growth and the fact that Mongolia became a middle-income country affected the decision. Currently, the economy is experiencing difficulties and Mongolia requests the USA to continue the implementation of projects and programs aimed to reduce poverty.” The two sides discussed past projects, results, future cooperation and goals.

Keywords: USA, bilateral partnership   Today /page A2/


Budget deficit reaches 2 trillion MNT

Summary: Yesterday, the Ministry of Finance announced that the budget deficit reached 2 trillion MNT. The budget revenue reached 4 trillion MNT, missing the planned goal by 170 billion MNT. This is attributed to the 190 billion MNT in losses due to non-tax revenues. For instance, 180 billion MNT revenues from the privatization of the State Bank and the Mongolian Stock Exchange were projected in the budget initially; however, the privatization did not take place. Personal income tax and other taxes decreased by around 80 billion MNT. The budget revenue was comprised of 87% tax revenue, and the remaining amount was made up of non-tax revenue.   

Keywords: budget deficit, loss   Today /page A5/


ECONOMY

D. Tserenjigmid: If the mortgage program discontinues, 95% of companies in the construction sector are likely to go bankrupt

Summary: The President of the Mongolian National Construction Association D. Tserenjigmed stated that, “Even though the Government announced that the mortgage programs would continue, it has been two months since the 8% mortgage program has been active. The construction sector, a key sector of Mongolia’s development, is about to deteriorate significantly. By stopping the mortgage programs, 95% of companies in the construction sector are ready to halt operations or to close down operations. If the situation worsens, companies will downsize, resulting in an increased rate of unemployment and the potential to create social discontent and decreased contributions to Social Insurance and the Income Tax. Construction companies have decreased the prices of their apartments to the lowest possible price, and some even want to sell at a loss.”

Keywords: mortgage, construction   Daily News /page 6/


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Non-performing loans of the Banks

Summary: The National Statistical Office of Mongolia reported that, as of September 30, 2016, the balance of unpaid and overdue debt reached 782.2 billion MNT and non-performing loans (NPL) reached 1.0363 trillion MNT. As a result, 15% or 1.8 trillion MNT of the total loans in the Mongolian banking system are at risk. The average of previous year’s non-performing loans was around 200-300 billion MNT; however, during the last 2-3 years, the total NPL increased aggressively, crossing the threshold of 1 trillion MNT. Currently, the monthly NPL amount is averaging in 20-50 billion MNT.     
 

Keywords: non-performing loans, banks   www.news.gogo.mn


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