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ECONOMY
FOREX RESERVES STAND AT 2.9 BLN USD IN NOVEMBER
Mongolia's foreign exchange reserves stood at 2.9 billion U.S. dollars at the end of November, up 5.3 percent from a month earlier, the country's Ministry of Economy and Development said Wednesday.
However, the volume was down 29.5 percent compared with the same period last year, according to the ministry.
Mongolia must make sovereign bond payments in the coming two years, the central bank has said, stressing the necessity to increase the forex reserves.
The country's forex reserves stood at 4.9 billion dollars at the end of April 2021, hitting an all-time high, according to the central bank.
In 2023 alone, the Asian country will have to repay sovereign debts worth 1.3 billion dollars.
Source: Xinhua
MONGOLIA PAYS OFF USD 1.5 BILLION CHINGGIS BOND
Today, on December 6, the Prime Minister of Mongolia, L. Oyun-Erdene, announced that the Mongolian government has repaid in full its inaugural USD 1.5 billion Chinggis bond in a bid to manage its debt profile.
Before the meeting with the press, the Prime Minister authorized the Minister of Finance to transfer the remaining USD 136 million of Chinggis Bond debt and signed the relevant order.
In 2012, the Government of Mongolia issued Chinggis Bond, raising USD 1.5 billion with a condition to repay USD 500 million in 2018 and the remaining USD 1 billion in 2022. According to the condition, the first part of the debt and its interest were repaid on January 5, 2018.
Source: Montsame
ERDENES TAVAN TOLGOI EXPORTS 108 THOUSAND TONS OF COAL IN ONE DAY
According to “Erdenes Tavantolgoi” JSC, 108,123 tons of coal were transported from the company’s deposit by 1052 vehicles between 00:00 and 24:00 on December 7. This is the highest performance of coal shipment in one day since the company was established.
It has been more than a month since the government appointed Special Plenipotentiary Representative to “Erdenes Tavantolgoi” JSC to make the company’s activities transparent and open and to make a plan to increase consignment and sales.
Special Representative J. Ganbat, appointed by the government at the company, announced that “Erdenes Tavantolgoi” JSC has sold 4.2 million tons of coal worth USD 369.5 million in the past. Thereof, 2.3 million tons of coal worth USD 205 million were sold last November, and 1.5 million tons of coal were exported through the Gashuunsukhait border checkpoint. The company sold USD 143 million to the Bank of Mongolia.
Source: Montsame
NUMBER OF PASSENGER FLIGHTS AND VISAS TO BE INCREASED
The government has announced 2023-2025 as “The Years to Visit Mongolia.” Within the framework of this context, the revised draft Law on Tourism included no restrictions on passenger flights to Mongolia following 3 years.
After starting the liberalization of the air transport sector, Mongolia will accept all passenger flights from any country with no restrictions in the next three years. In addition to this decision, our country will double the number of countries for e-visas and issue visas online within 48 hours through the digital system.
The government has prepared and submitted the revised draft of the Law on Tourism which was initially approved in 2000 to the Parliament to improve the legal framework of the industry.
Source: Montsame
DISCUSSIONS ON THE EFFECTS OF POLICIES AND COORDINATION IN THE CAPITAL MARKET AND TAX ENVIRONMENT
Discussions on the Effects of policies and co-ordinations in the capital market and the legal environment of tax took place on 6 December, 2022. The discussions were to:
- determine the current status of the capital market,
- outline policy measures to be developed further, and
- identify opportunities for large enterprises to register as open JSCs on the stock exchange.
D. Bayarsaikhan (Chairman, FRC) in his opening speech stated ‘In recent years, the FRC has taken the following measures to develop the capital market:
- conforming to international standards and increasing active interest in issuing and attracting securities as public offerings from domestic enterprises, and
- increase the confidence of foreign and domestic investors in the market, and increase the number of new products and services.
As a result of these, the market value has increased and impacts upon the real economy improved. However, the impact of the capital market on finances and the economy in Mongolia is low compared to other Asian countries.
Source: FRC
FRC DISCUSSES IMPLEMENTATION OF CURRENT PROJECTS WITH IFC
Mr. Bayarsaikhan Dembereldash (Chairman, Financial Regulatory Commission of Mongolia) received Mr. Randall Riopelle (Country Manager for China, Korea, and Mongolia, International Finance Corporation), and Mr. Rufat Alimardanov (Resident Representative for Mongolia, International Finance Corporation).
During the meeting, the two sides exchanged their views on the implementation of current projects including the Green Finance Market Development Project and the Mongolian Value Chain Finance Market Development Project, and further collaboration.
The Green Finance Market Development Project aims to develop policies for green finance in Mongolia, support green project financing, and introduce Environmental, Social and Governance (ESG) standards to entities. Within the framework of this project, research on the development of the green bond market was conducted, and regulations of green bond registration are included in the Regulation on Corporate Bond Registration. In addition, collaborating with key stakeholders, a National Sustainable Finance Roadmap was adopted by the Financial Stability Council, and the Financial Regulatory Commission (FRC) approved a Model Guideline for Integrating ESG Risk Management for NBFIs.
Source: FRC
RESEARCH PRESENTED ON IMPACT OF POLICIES AND DECISIONS ON CIVIC SPACES DURING PANDEMIC
In connection with the outbreak of the COVID-19 pandemic, the Government of Mongolia adopted a special law "On preventing and combating the spread of coronavirus (COVID-19) and reducing its negative impact on society and economy (hereinafter referred to as the “COVID-19 Law”)".
During the pandemic period, the COVID-19 Law was amended eight times, the Disaster Protection Law was amended nine times, and the Resolution of the Government to transfer to the “Higher level of preparedness for disaster protection” was amended ten times. The Independent Research Institute of Mongolia, one of Mongolia's earliest research institutes, conducted this research aiming at elucidating how all these policies, resolutions, and decisions implemented during the pandemic affected the civic space, calculating the consequences of government decisions on the civil space during any shock and disaster, and developing policy recommendations for protection measures.
Source: IRIM
KANA ENDO: VOLUNTARISM IS A GATE FOR YOU IF YOU WANT TO MAKE A DIFFERENCE - EDITORIAL
My UNV Story
Hello. I am Kana Endo, an international UNV from Japan at the UN’s Resident Coordinator Office (RCO) in Mongolia.
On this International Volunteer Day, please let me use this opportunity to introduce my UNV (United Nations Volunteers) experience in the hope to promote voluntarism among youths in Mongolia.
Currently, there are a national UNV and three international UNVs at United Nations in Mongolia. I am one of the international UNVs here, working as a Communication and Advocacy Assistant at the RCO in Mongolia from September 2022 to February 2023.
Looking back on my childhood, I liked learning new things but at the same time was very shy and introverted. However, I was very passionate about learning English and cultures in different countries. Therefore, I chose a high school with English course had been dreaming of one day studying abroad.
Source: UN Mongolia
FAO ASSITANT REP: ‘MICRONUTRIENT DEFICIENCIES ARE COMMON AMONG ALL POPULATION GROUPS’ - INTERVIEW
In the following interview, Assistant Representative of the United Nations Food and Agriculture Organization (FAO) in Mongolia G.Nyamjargal delved into the level of food security in the country.
How is the situation of food security in Mongolia? How is food insecurity measured?
Food safety is a very broad concept. Whether or not this is ensured is measured by the development of the agricultural sector, natural and environmental conditions and economic opportunities. It is also determined by the long-term sustainability of cooperation between sectors and government policies and decisions.
The World Food Summit of 1996 defined food security as existing “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. Commonly, the concept of food security is defined as including both physical and economic access to food that meets people’s dietary needs as well as their food preferences. In general, food security is measured by four key indicators: food supply, access, nutrition and sustainability.
Source: The UB Post
TOXIC WINTER: THE ‘SLOW VIOLENCE’ OF AIR POLLUTION IN MONGOLIA - EDITORIAL
This recurring phenomenon of toxic winter air in Ulaanbaatar can be best understood as a form of “slow violence.” This term was coined by literary scholar Rob Nixon in 2011 to describe the non-spectacular, sometimes even invisible, ways in which the most marginalized communities are being threatened by environmental degradation and anthropogenic climate change. Slow violence challenges the mainstream understanding of violence as immediate, explosive, or spectacular and, instead, sees violence as happening when people are denied basic needs through social, economic, and/or political structures such as institutionalized forms of racism, sexism, and classism.
The invisibility of toxic air pollution and its gradual accumulation over time makes it an excellent candidate for the “slow violence” analysis. In fewer places is this issue more pertinent than in Ulaanbaatar.
Understanding toxicity as a form of slow violence reveals some of the challenges involved in measuring and addressing air pollution.
Source: The Diplomat
POLITICS
MASS PROTEST DEMANDS DISCLOSURE OF ‘STATE COAL THIEVES’
The amount of coal exported by Mongolia differs from the figures provided by the authorities of China. The Chinese side reportedly sent the names of Mongolian politicians involved in the theft to Prime Minister L.Oyun-Erdene. Therefore, the protesters are demanding that the government and the president reveal the names of all coal thieves.
However, protesters are not only insisting on the full disclosure of the coal theft but also expressing their displeasure with pressing social issues, namely inequality, tugrug depreciation and inflation. They stood up against the government and Parliament for failing to effectively deal with the rocketing inflation situation in Mongolia and making the people suffer.
During the demonstration, the youth expressed, “We are very upset about the price spike. If the 44 trillion MNT stolen through secret coal trades is confiscated and distributed to the 3.5 million citizens, our lives can be improved. We want to live happily in our country but we have nothing to hope for today. The rights and freedoms of citizens are being lost and people’s lives are deteriorating day by day.”
Source: The UB Post
See also: Mongolians attempt to storm Government Palace as protests over coal profits scandal swell
China executes officials involved in theft of coal from Mongolia
142 coal sales contracts disclosed
Mongolia’s coal mafia demonstrations continue for fifth straight day
PM’s attempt to quell Mongolia’s ‘coal mafia’ protests drowned out by livid crowds
What has pushed Mongolians to take to the streets in protest?
Mongolians brave bitter cold to protest 'coal theft' corruption
Mongolia arrests ex-head of state mining company after corruption protests
Mongolian PM Meets With Protesters Over Millions in Missing Coal
PUBLIC HEARING ON COAL THEFT ALLEGATIONS TO BE ORGANIZED
The Standing Committee on Economy of the State Great Khural will organize a public hearing on the issues of coal shipment and export on December 21.
The public hearing will be held on the following topics:
- Offtake agreements established by “Erdenes Tavantolgoi” JSC that included payment terms of making payments by mineral resources and raw materials and were made in advance and already used;
- The enterprises that mined coking coal in the country and the amount of the output;
- The enterprises that transported coking coal and their revenue;
- Detailed information on the coking coal exported through all border checkpoints of Mongolia.
The hearing will also include the following:
- The issues of the excessive difference between the cost of coking coal on the international market, Mongolia’s export price, and China’s price;
- Whether the difference creates the conditions for corruption and tax evasion by certain persons in both countries;
- …
Source: Montsame
See also: Representatives of Demonstrators to be Included in Working Group to Resolve Coal Theft Allegations
President Tasks to Expedite Works on Resolving Coal Theft Allegations
ULAANBAATAR CITY’S BUDGET FOR 2023 APPROVED
At the 16th regular meeting of the Citizens' Representative Khural, a draft resolution on approving the 2023 budget of the capital city was approved by a majority vote.
The 2023 fiscal revenue plan of the capital city is 2.2 percent higher than in 2022, 13.1 percent higher than expected, and 46.7 percent higher than in 2021. In terms of expenditure, in addition to operational cost, the capital city's 2023 budget includes renovation of the public transport fleet, construction of ring roads, 10.2 km of main streets and roads in four locations, construction of 930-meter-long bridges, 12.3 km of auxiliary lanes in nine locations, construction of 30-meter-long bridge structures, as well as large-scale construction works aimed at increasing access to kindergartens.
The primary goal of the capital city's 2023 draft budget was to continue implementing policies to minimize the shadow economy while also increasing budget income through the gradual improvement and digitization of tax records and the digital payment receipt system.
Source: UB Mayor's Office
MINING MINISTER OUTLINES NEW EXPLORATION LICENSING POLICY
Mining Minister Jambalyn Ganbaatar stated that the new exploration licenses, which have been halted since February 2022, will be awarded in tiny batches to avoid arousing local community opposition. He also indicated that exploration licenses would be issued in batches of 5-10 instead of wholesale.
50 invitations for the selection of mineral licenses due December 23, 2022, are open on the government's tender site.
Minister Ganbaatar acknowledged key restrictions to expand the mining sector and attract more investors, citing the fact that 76 percent of Mongolia’s total territory remains under special protection. This means “the specially protected” land area equal to the autonomous region of Inner Mongolia of China is legally prohibited for any economic activities.
Only 2.6 percent of the country (equal to Switzerland territory) is currently permitted for mining exploration, while only 0.23 percent (~Long Island, New York) is mined. Because desertification and climate change affect most of the land available for economic activity (equal to Japanese territory) miners, herders and farmers compete for it.
Source: Mongolia Weekly (paywalled)
224 BUSES TO BE IMPORTED AS PART OF PUBLIC TRANSPORT FLEET RENOVATION
Prime Minister L.Oyun-Erdene instructed officials to submit the draft law to reduce traffic congestion and its negative effects in the capital city of Ulaanbaatar and accompanying laws to Cabinet within this month.
The following decisions were made during the meeting:
- Minister and Chairman of the National Committee on Traffic Congestion J.Sukhbaatar instructed the relevant officials to pay attention to the implementation of the regulations for public transport to travel on the first lane of the road.
- The work to accelerate the implementation of the BRT project has started. Directions were given to have the loan financing of the project approved by Parliament.
- Around 100 buses will be imported from China on January 5, 2023 and 124 buses will be imported in February 2023 as part of the public transport fleet renovation.
- The “Digital Certificate” RFID project for vehicles is being successfully implemented. As of today, more than 380 devices have been installed at about 160 intersections.
Source: The UB Post
3 IMPLEMENTING AGENCIES OF UB CLOSED DOWN
Chief of the Cabinet Secretariat D.Amarbayasgalan has presented the decisions made at the Cabinet meeting on December 1.
“In order to ensure the balance of urban and rural development, relevant ministers have been assigned the task of drafting a law to create a legal environment to support citizens and business entities moving from Ulaanbaatar to rural areas,” said D. Amarbayasgalan. “The members of Cabinet and governors of provinces, capital city and districts were instructed to implement the policy of transferring at least 10 percent of their employees to other branches in rural areas.”
The chief secretary also pointed out that the structure of the capital city was redefined according to the proposal made by the city mayor at the Cabinet meeting. Thus, three implementing agencies of the capital city have been closed down and their activities will be carried out by other agencies.
He then presented information on the measures being taken to reduce traffic congestion and improve access to public transport in Ulaanbaatar.
Source: The UB Post
‘BASIC ASSESSMENT WILL BE MADE TO CALCULATE LAND FEES’
During its plenary session on December 1, Parliament reviewed the draft revision of the Law on Land Payment and other corresponding bills, submitted by the government on June 17.
State Secretary of the Ministry of Construction and Urban Development S.Magnaisuren explained that land category, zone and basic assessment must be taken into account to calculate land fees. According to the government’s order, Ulaanbaatar is divided into 16 zones and land fees are determined accordingly. Regional and market price data are analyzed to set the land price. Factors affecting the land price are calculated and the basic assessment is made. Fees are imposed on more than 500,000 units of land across the country. In 2021, the state budget collected 112 billion MNT from land fees. In accordance with the draft revision of the law, it will be possible to earn 22 billion to 458 billion MNT per year through these fees, he said.
Source: The UB Post
PETER EIGEN: MONGOLIAN GOVERNMENT NEEDS TO MAKE IT CLEAR THAT THEY CAN RESPONSIBLY MANAGE AND MONITOR MEGA PROJECTS - INTERVIEW
Prof. Dr. Peter Eigen began his campaign to fight against corruption while he was working as a Program Manager at the World Bank. However, he had to quit his job to focus on the campaign as it was rejected by the management, and founded the “Transparency International” in 1993. He is the founder of a large anti-corruption organization with 30 years of experience and National Chapters in 110 countries. Furthermore, he has rich experience in developing the first concept, founding, and managing the “Extractive Industries Transparency Initiative”. Mining Insight’s O.Batbold sat with him for an interview in Berlin.
You have accumulated valuable experience in creating and leading international anti-corruption initiatives and programs while you were working in the economic development and governance sectors. In particular, you founded Transparency International and chaired its Board for 12 years, and later its Advisory Board. Has Transparency International developed into a good anti-corruption platform? What is the impact and strength of this organization?
Source: Mining Insight
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