Oriental Capital NBFI

24/08/2016

Social and economic situation of Mongolia (As the end of July, 2016)

According to report of the Bank of Mongolia,
money supply (broad money or M2) reached
to 11.3 trill.tog at the end of July 2016, it has
increased by 120.1 bln.tog or 1.1 percent from
the previous month, by 1446.3 bln.tog or 14.7
percent compared to the same period of the
previous year.

At the end of July 2016, currency issued
in circulation reached 818.2 bln.tog decreased
by 21.1 bln.tog or 2.5 percent from the previous
month and increased by 59.2 bln.tog or 7.8
percent compared to the same period of previous
year.

In the first 7 months of 2016, total
equilibrated revenue and grants of the General
Government Budget amounted to 3040.2 bln.tog
and total expenditure and net lending amounted
to 5014.3 bln.tog, representing a deficit of 1974.1
bln.tog in the equilibrated balance.

http://www.en.nso.mn/content/157

Mongolian national statistics office

18/08/2016

Government tasked granting mortgage loan program to commercial banks

The question that will be continuing mortgage loan program citizens asked from governors after new government completed. Prime Minister of Mongolia informed mortgage loan program will be continue. Also government tasked granting mortgage loan program to commercial banks.

So, Board of Directors of the Bank of Mongolia has decided to increase the policy interest rate by 4.5 percentage point to 15 percent. That’s why increasing policy rate, increasing loan interest rate and granting mortgage loan might be decrease.

Economists thought that mortgage loan program might be narrow.

18/08/2016

Mongolian economic growth:
Mongolian main economic indicators are falling continuously over the past four years. Economy growth was 17.3 percent in 2012 and it is expected to be at 1.3 percent by the end of 2016.

Money supply:
Money supply has increased by 66 percent in 2014 compared to the 2011 and has dropped since 2015 and reached 9,85 trillion in Jan, 2016. In other words, one of the main reason for economic crisis was supplying large amount of money to the market which has not linked to the economic situation when balance of payments deficit has been increased and foreign investment has been declined sharply. As a result, risk in the banking system has increased, foreign currency reserves has significantly reduced and the Tugrik rate has weakened, concluded by the Minister of Finance.
Over the past four years, wrong monetary policy has been implemented. As a result, money supply has exceeded economic growth of more than 85 percent.
Cash flow has risen by 18 percent during 2011-2013 and has declined starting 2014 and reached its lowest level or MNT 655 billion in Feb, 2016. Cash flow has increased by MNT 183.7 billion and reached MNT 839,2 billion over the last four months which resulted cash shortage at first. Then, cash flow has sharply risen and deepened economic crisis.

On 9th of August, Minister of Finance Choijilsuren.B reported the current situation of Mongolian society, economy, budget and finance. Mongolian economic growth: Mongolian main

18/08/2016

State Service costs to be saved through reduced salary for servants

On August 16, Head of Department of Budget Policy and Planning of the Ministry of Finance Ganbat.J made a press statement on the recent decision by the Government to save expenditures by cutting salaries of state officials.

Salaries of high-rank officials in the political and government administrative bodies will be reduced by up to 30%, and salaries of management officials of localities’ administrations will be cut by up to 20 %, the draft proposal outlines. In other words, the reduction of salaries will be imposed to those who are in or above the positions of Governor of Province, Chairman of City council and Director of Agencies.

The officials, ranking lower than the above positions, will have their regular salaries, he explained.

If enforced, the measure is expected to save MNT 3 billion in 2016, and some MNT 8 billion in the next year. The cost-reducing measures will also incorporate the reduction of salaries for management of state-owned companies, banning their purchase of new gadgets and furniture on state budget, cutting their phone bills and gas money, he informed.

03/08/2016

Erdenet Mining Corporation should be wholly privatized

In an interview with Director of Altan Dornod Mongol and Director of the Board of the Mongolian Gold Producers Association T.Ganbold spoke about issues concerning the nation’s gold sector and the ownership of Erdenet Mining Corporation, which has been at the center of attention since late June.

-Gold is one of the major export products of Mongolia. How much gold has been explored so far?

-As of the end of July, the gold exploration of domestic companies reached nearly nine tons. This year, Mongol Bank projects that 20 tons of gold will be explored, which would make up around 800 million USD in foreign currency reserves for Mongolia. Last year, Mongolia exploited around 15 tons of gold. Prices for gold are growing higher, which is very good. Because of unstable political situations around the world, people are avoiding long-term investments, making investments in gold instead.

-The new cabinet has been formed. What issue do they need to focus on to develop the gold sector and increase the foreign currency reserves of Mongolia?

-Over the last three years, former leaders talked about gold financing, which created great expectations. On paper the government says it will invest 256 billion MNT in supporting the gold sector. It is not an additional payment or fee for something. It could be considered an advance payment for delivered gold.

If they give the money to companies which have been consistently delivering gold, they can expand their operations and make additional explorations, which would positively influence increasing the gold supply in the future.

In short, it’s an investment without risk. This is an activity with a policy to intensify and increase payment for gold exchange. Unfortunately, this is not being realized in real life.

Gold companies are fulfilling their duties. They are meeting gold supply volume, environmental reclamation, and responsible mining requirements.

http://orientalcapital.mn/pages/erdenet-mining-corporation-should-be-wholly-privatized

THE STATE IS A MEGA COMPANY CONSISTING OF STARVING POLITICIANS WHO HAVE GREAT POWER. In an interview with Director of Altan Dornod Mongol and Director of the Board of the Mongolian Gold Producers Association T.Ganbold

03/08/2016

Famous Japanese artists appointed as Mongolian Cultural Envoys

Minister for Foreign Affairs of Mongolia Munkh-Orgil.TS has appointed Japanese singer and artist Yashiro Aki and artist Shingetsu Shikandai as Mongolian Cultural Envoys and presented them Certificates. Ambassador of Mongolia to Japan Khurelbaatar was present at this ceremony.

Japanese singer Yashiro Aki gave her concert in Mongolian State Academic Theatre of Opera and Ballet on 31st of July, 2016. Mr.Shingetsu Shikandai held his art exhibitions in Japan, China, USA, Monaco, Mongolia, France. In commemoration of the 40th anniversary of the establishment of diplomatic relations between Mongolia and Japan Mr.Shingetsu Shikandai organized “Moon, star Dragon, Horse” art exhibition in 2013, and “Shikandai” art exhibition in 2014.

In the remarks, Minister Munkh-Orgil.TS expressed his confidence over newly appointed Cultural Envoys potentials in promoting Mongolian unique history and culture to friendly public of Japanese as well as emphasized on further roles of Cultural Envoys in broadening bilateral cooperation in culture, art, history, sport, science and humanitarian field, reports the Ministry of Foreign Affairs of Mongolia on Monday.

27/07/2016

100 billion MNT in trading conducted at the MSE in Q1 and Q2 2016

The Mongolian Stock Exchange (MSE) presented its 2016 half-year report on Tuesday, and underlined that it organized trading of 98.6 billion MNT, 85.3 billion MNT (86.6 percent) of which was made up by government bond sales and 13.2 billion MNT (13.4 percent) by shares sales.

The report shows that the MSE has a total of 58 member companies, 43 of which are authorized to participate in trading. The authorization of 15 companies has been temporarily suspended, while 34 companies are participating in the MSE’s trading from
overseas. Six companies were removed from MSE registration in May 2016. MSE registered companies are expected to issue 15.4 billion MNT in dividends to their investors from their 2015 profits.

http://orientalcapital.mn/pages/nearly-100-billion-mnt-in-trading-conducted-at-the-mse-in-q1-and-q2-2016

The Mongolian Stock Exchange (MSE) presented its 2016 half-year report on Tuesday, and underlined that it organized trading of 98.6 billion MNT, 85.3 billion MNT (86.6 percent) of which was made up by government bond sales and

27/07/2016

2730 housings out of 7374 were commissioned in scope of ger district re-planning project

Members of Parliament stated at the meeting with City Governor and the City Mayor on the process of ger district re-planning project and its further implementation that 2730 housings out of 7374 were commissioned in scope of ger district re-planning project.

In the framework of ger district re-planning project, 2583 citizens of 615 families have swapped their lands. In result, carbon dioxide emissions per year were decreased by 105.6 tones, dust were decreased by 2.92 tones and sulfur emissions were reduced by 10.4 tones.

Members of Parliament stated at the meeting with City Governor and the City Mayor on the process of ger district re-planning project and its further implementation that 2730 housings out of 7374 wer

23/07/2016

Mongolian People’s Party (MPP) re-consider ministers nomination

Parliamentary faction of the Mongolian People’s Party (MPP) has reportedly called a special meeting of Board to review the nominations to the Ministers’ offices. The MPP has been promising to form a “professional cabinet” ever since the beginning of its election campaigns.

The nominations by the previous meeting of the MPP board, held on July 21, has been greatly subjected to public criticism, as well as from their own members.

Following four ministers were revoked. The reason was seen as a conflict of interests, stated by the Independent Agency Against Corruption.
Minister of Construction and Urban Developing – Unurbolor.D
Minister of Food, Agriculture and Light Industries – Anandbazar.TS
Minister of Health – Tsolmon.J
Minister of Energy – Tsengel.Ts

http://orientalcapital.mn/pages/mongolian-peoples-party-mpp-re-consider-ministers-nomination

Parliamentary faction of the Mongolian People’s Party (MPP) has reportedly called a special meeting of Board to review the nominations to the Ministers’ offices. The MPP has been promising to form a “professional cabine

23/07/2016

Elbegdorj Tsakhia, President of Mongolia attends the farewell ceremony for Mongolian Olympic team

Farewell ceremony for Mongolian Olympic Team heading to Rio 2016 was held today at Chinggis square.

During the ceremony, uniforms for the Rio 2016 Olympics, state flag and donations were handed over to the athletes.

President Elbegdorj.TS, Prime Minister, MPs, Mongolian National Olympic Committee, Ministry of Health and Sports, Olympic Development Fund and Olympic medalists have attended the ceremony.

http://orientalcapital.mn/pages/elbegdorj-tsakhia-president-of-mongolia-attends-the-farewell-ceremony-for-mongolian-olympic-team

Farewell ceremony for Mongolian Olympic Team heading to Rio 2016 was held today at Chinggis square.

23/07/2016

Bank of Mongolia new president appointed

During the first parliamentary session held on Tuesday, President of Mongol Bank Zoljargal.N was allowed to resign and Bayartsaykhan.N was appointed the new president of the central bank.

The appointment was made valid right after the decision was made, and Zoljargal.N handed over his seal to Bayartsaikhan.N.
Bayartsaikhan Nadmid is a labor economist and political analyst, having graduated from the Irkutsk State University and the Moscow Academy of State Administration, and holds a doctor’s degree in economics. He received additional training in New Zealand and the USA in 2001, 2005, 2009 and 2010, in fields of finance and management.

http://orientalcapital.mn/pages/bank-of-mongolia-new-president-appointed

During the first parliamentary session held on Tuesday, President of Mongol Bank Zoljargal.N was allowed to resign and Bayartsaykhan.N was appointed the new president of the central bank. The appointment was made valid right after the de

21/07/2016

ASEM leaders celebrated its 20th anniversary with Nomadic Naadam

On July 15, Friday afternoon, Asian and European leaders celebrated the 20th anniversary of Asia-Europe Meeting (ASEM) at the 11th ASEM Summit in Mongolia. After plenary discussions on the past two decades and future visions, the delegates partook in ‘Nomadic Naadam’, a mini-showcase event of Mongolian traditional holiday, and a gala dinner.

The event opened with Mongolian President Elbegdorj Tsakhia welcoming speech. The Naadam started with a ceremony of honorary cavalry guards and continued with showcase of traditional culture and performing arts program, ending with rendition of three essential games: bokh wrestling, horse racing, and archery.

“Naadam is the highest expression of honor and respect for the people of Mongolia. We are proud of our history, culture, and traditions that we have retained and cherished for many centuries. One could even say Naadam is behind the success, victory, and prosperity of Mongolians. We present to you the apex of the Mongolian culture and pride,” said President on commencing the celebration ceremony.

After Naadam, President of Mongolia hosted a gala dinner for the 53 heads of delegation of the ASEM11 Summit.