The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. On business, it discusses a potential mining agreement, bank ratings changes, mining company profits and deals. On the economy, it covers growth forecasts, fiscal policy responses to the crisis, and various economic indicators. On politics, it discusses government personnel changes and policy issues. It also announces that the Business Council will begin accepting limited commercial advertisements.
Strong fundamentals drive US dealmaking despite macro-economic and political uncertainties. First-half activity remains on a par with 2016 as strong fundamentals continue to drive M&A.
Though US M&A faced challenges in H1 2017, the figures show that the market is active and vibrant. There were 2,413 deals worth US$588.5 billion recorded in H1 2017, up 0.5 percent by value compared to US$585.4 billion registered in H1 2016. If activity continues at its current level, US dealmaking is on track for another strong year.
Some forecasts about Mergers and Acquisitions for 2018Suzzanne Uhland
Mergers and acquisitions of companies are one of the alternatives within the possible investment strategies that a company may follow in order to fulfill its traditional mandate to maximize the benefit for its shareholders. What can be expected from mergers and acquisitions during the next year? Let's see.
In this special edition of Valuation Insights, we discuss some of the key valuation and compliance impacts that will likely result from Brexit. Specifically, we review the short-term and long-term economic implications, as well as compliance and regulatory considerations. We also highlight valuation issues, including how companies and investors determine cost of capital and measure risk in the current environment, and discuss implications for transfer pricing with respect to EU Directives. While all industries will be impacted by Brexit, in this issue we focus on the banking and financial services sectors, which stand to be the most heavily affected.
Comment choisir mobile Développeurs Mobile App développement etStabl Web
le développement d'applications mobiles est maintenant essentielle à la réussite de tout produit ou service. Ici, nous discutons comment choisir les développeurs mobiles, le développement et l'évolution de l'application mobile. Étudier à travers et savoir ce qui fait une grande application mobile.
How to Lead the People Side of Your BusinessTodd Averett
Leading the PEOPLE side of your business is every bit as important as your business strategy, products, and processes. This presentation will show you how to lead the people side of your business more effectively.
Strong fundamentals drive US dealmaking despite macro-economic and political uncertainties. First-half activity remains on a par with 2016 as strong fundamentals continue to drive M&A.
Though US M&A faced challenges in H1 2017, the figures show that the market is active and vibrant. There were 2,413 deals worth US$588.5 billion recorded in H1 2017, up 0.5 percent by value compared to US$585.4 billion registered in H1 2016. If activity continues at its current level, US dealmaking is on track for another strong year.
Some forecasts about Mergers and Acquisitions for 2018Suzzanne Uhland
Mergers and acquisitions of companies are one of the alternatives within the possible investment strategies that a company may follow in order to fulfill its traditional mandate to maximize the benefit for its shareholders. What can be expected from mergers and acquisitions during the next year? Let's see.
In this special edition of Valuation Insights, we discuss some of the key valuation and compliance impacts that will likely result from Brexit. Specifically, we review the short-term and long-term economic implications, as well as compliance and regulatory considerations. We also highlight valuation issues, including how companies and investors determine cost of capital and measure risk in the current environment, and discuss implications for transfer pricing with respect to EU Directives. While all industries will be impacted by Brexit, in this issue we focus on the banking and financial services sectors, which stand to be the most heavily affected.
Comment choisir mobile Développeurs Mobile App développement etStabl Web
le développement d'applications mobiles est maintenant essentielle à la réussite de tout produit ou service. Ici, nous discutons comment choisir les développeurs mobiles, le développement et l'évolution de l'application mobile. Étudier à travers et savoir ce qui fait une grande application mobile.
How to Lead the People Side of Your BusinessTodd Averett
Leading the PEOPLE side of your business is every bit as important as your business strategy, products, and processes. This presentation will show you how to lead the people side of your business more effectively.
Humanitarian Informatics Approach for Cooperation between Citizens and Organi...Hemant Purohit
Social networks have empowered citizens to voice their experiences, observations and share information, playing an important role for events related to humanitarian issues. Although a vast amount of data shared on social media may contain valuable information for the decision making, such as response planning in the crisis times, such as situating call for help, and resource availability, the conventional organizational information management face information overload challenge to ingest new information source of citizen-generated data. This paper positions a humanitarian informatics framework to address the information overload problem of organizational actors via a cooperative information system design between citizens and organizations, guided by process knowledge. The framework operationalizes computation into the design process by transforming computationally tractable parts of the design problems into data problems, which meet information needs of organizational actors. This approach can be leveraged for humanitarian problems beyond crisis coordination.
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
31052024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
01062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
03062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
info@bcmmongolia.org
Issue 57, February 13, 2009
NEWS HIGHLIGHTS:
Business: Special Parliament session not to discuss Oyu Tolgoi draft; Moody’s likely to downgrade
ratings of TDB, Khan and Xac Bank; Rio chairman-elect quits over Chinalco deal;
Centerra Gold profits up; Workers worried about Boroo Gold mine closure; Pepsi-Cola
starts recruiting; Rio Tinto survey shows profit may gain 32%, JPMorgan says; Canadian
company wins contract to supply housing for Mongolia; Peabody-Polo deal to be closed
in first quarter of 2009; Mongolia keeps middle rank in mining risk assessment report;
Study says Mongolia can earn more in tax from mining, if it lowers rates; Western
withdraws case against Tinpo; New mining website launched.
Economy: Growth may be as low as 2 percent, Bayar is blunt; Situation grim, feels Central Bank
head, but sees no need to despair; Crisis may become worse, World Bank officials
warn; MNT740 billion needed immediately to implement crisis plan; MPs grill Finance
Minister on specifics of action plan; IMF worried about its own resources; World Bank
urges prudent fiscal management; Resource nationalism on the retreat, says IFC
official; 40% drop in remittance from Korea, many return home; Czech Republic to
repatriate Mongolians, with cash dole; Firm to construct oil refinery wants a
guarantee; Chamber head urges immediate end to allowances; “We will continue to
protect the poor,” says Ministry official; Trade union opposes raising heating, power
charges; Petrol prices fall by MNT50-65 a liter; 4.6 million tons of minerals exported
in 2008; Need to revamp social insurance sector stressed; Fears for China’s wheat
crop, source of Mongolian import; MNT2.8 billion needed to create medicine stock;
Higher income tax proposed for currency traders.
Politics: Bayar did not need surgery in Seoul; President cancels visit to 4 Asian countries; Head
of Civil Aviation Authority dismissed; Japanese woman teacher robbed and killed;
MIAT cancels flights to Berlin because of low traffic; MPRP faces dearth of
experienced organizers; Changes made in laws by former Speaker to be discussed;
Mongolia improves score on hunger index; No school land to be given for other use;
Drivers not wearing safety belts to be fined MNT10,000; Three say currency traders
cheated them of MNT90,000; Mongolia adopts the Universal Address System.
NOTE TO BCM MEMBERS
At the request of several members, BCM will begin accepting a limited number of commercial
business advertisements for placement in the BCM NewsWire beginning the first issue after
TsagaanSar, Friday, March 6. Advertisements should have a maximum of 100 words.
Ad copy should be received at the BCM office by Wednesday at 5 PM for each week‟s issue.
Tel/Fax: 976-11-332345; Email: info@bcmmongolia.org.
BUSINESS
SPECIAL PARLIAMENT SESSION NOT TO DISCUSS OYU TOLGOI DRAFT
The special session of Parliament called for February 12 does not have the draft agreement for Oyu
Tolgoi on the agenda. The Speaker‟s office said the Government did not include it in its request for
2. the session.
Source: Ardiin Erkh
MOODY’S LIKELY TO DOWNGRADE RATINGS OF TDB, KHAN AND XAC BANK
Moody's Investors Service has put on review for possible downgrade various ratings of three
Mongolian banks: Khan Bank, the Trade and Development Bank of Mongolia (TDB) and XacBank. The
ratings affected include the long-term local/foreign currency ratings of all three banks and short-
term local currency deposit rating of Khan Bank, but their bank financial strength ratings (BFSR)
and the outlooks or reviews for their BFSRs are unaffected.
"This review for possible downgrade follows Moody's recent decision to review for possible
downgrade Mongolia's sovereign ratings," says Ms. Cherry Huang, a Moody's Senior Analyst. "This
additional review is being conducted because of our concern that deterioration in Mongolia's
external payments position may limit the Government's ability to provide foreign currency liquidity
support to the country's banks."
All three banks have a relatively high dependence on foreign currency funding, relying on it for
amounts ranging from 29% to 50% of total assets as of December 2008. The conclusion of the three
banks' rating review may result in foreign currency debt or medium term note ratings that are lower
than the sovereign foreign currency bond ceiling.
Moody's last rating actions on Khan Bank and XacBank were taken on December 12, 2008, when the
outlook for the BFSR and local currency deposit and debt ratings of Khan Bank were changed to
negative. And the same ratings of XacBank were placed on review for possible downgrade. The last
rating action on TDB was taken on June 5, 2008 when the senior and subordinated debt ratings of
its Euro Medium-Term Notes Program were affirmed and its lower-tier II subordinated debt rating
was assigned.
As of December 31, 2008, Khan Bank reported unaudited assets of MNT841.8 billion (approximately
USD656 million), TDB MNT 668.7 billion (USD521 million) and XacBank MNT208.4 billion (USD162
million).
Source: Moody‟s Investors Service
RIO CHAIRMAN-ELECT QUITS OVER CHINALCO DEAL
Rio Tinto director Jim Leng has quit and will not become chairman as was planned after objecting
to a potential deal with the mining group's top shareholder, state-run Chinese aluminum maker
Chinalco. The departure of Leng, deputy chairman of India's Tata Steel, likely opens the way for Rio
to seal a deal with Chinalco, analysts said. Leng was named as Rio's next chairman just over three
weeks ago. Leng said in a statement he resigned following a dispute over how to cut Rio's heavy
debt load of around USD39 billion.
Last week, Rio said it had held talks with Chinalco about selling it convertible notes and stakes in
some assets, but declined to comment further. Leng did not mention the Chinalco deal in his
statement, but an industry source said that was the key issue. "He believes that the financial issue
is not best resolved through this Chinese solution because it has some strategy implications that are
going to restrict the long-term options available to the company," said the source. "The difficulty is
that if they're going to be selling off some of their growth assets, then not all of that growth will
accrue to Rio shareholders."
Another deal potentially in the offing for Rio is a sale of an asset, possibly Rio's 75 percent stake in
coal producer Coal & Allied Industries, to Japanese trading group Mitsui. The move comes as Rio
scrambles to sell assets and has axed jobs and projects to meet its target of reducing debt by
USD10 billion this year, but the sales have taken longer than expected against a backdrop of
tumbling global commodity prices.
Paul Skinner, due to step down as chairman on April 20, will remain until mid-year, by which time a
successor will be selected, London-based Rio said in a statement. Rio‟s board was “unanimous in
accepting Jim Leng‟s resignation,” senior independent director Andrew Gould said in a separate
statement.
Leng clashed with Chief Executive Officer Tom Albanese over the plans to sell a stake to Chinalco,
the Financial Times reported.
Source: Reuters.com, Bloomberg.com
3. CENTERRA GOLD PROFITS UP
Centerra Gold has increased its fourth-quarter net profit to USD42.6 million, compared with a
USD26.7 million loss in the same period a year earlier, when the company recorded a USD36.5
million non-cash expense, because it had expected to issue shares to the Kyrgyz government.
Stripping out unusual items, fourth-quarter earnings, which include an USD18.8 million writedown
of goodwill of its Mongolian assets, increased by USD337% year-on-year.
Profit was buoyed by much improved production levels, as well as strong bullion prices, the firm
said. Fourth-quarter revenue increased 170% to USD241.3 million, after the company sold 164%
more ounces. The realized gold price also inched up, by 2%. During the period, Centerra produced a
best-ever 236,544 oz of gold from its Kumtor mine, in Kyrgyzstan, as well as 47,501 oz from the
Boroo mine, in Mongolia.
Source: miningweekly.com
WORKERS WORRIED ABOUT BOROO GOLD MINE CLOSURE
The decision of Boroo Gold to close its mine on March 3 has caused concern among workers. Their
trade union held a press conference Monday and said the 1,000 people who stand to lose their jobs
want to be moved to work at the company‟s recently acquired Gatsuurt mine. The workers have
warned the management of industrial action if they do not receive a sum equal to 12 months‟
average salary.
The company has extracted 43 tons of gold so far this year.
Source: Zuunii medee
PEPSI-COLA STARTS RECRUITING
Pepsi-Cola is coming to Mongolia in a big way. A new US-Mongolian joint venture, GN Beverages
LLC, will produce and sell Pepsi here, and also pure water, soft drinks and juices under the brand
name. Beverage industry sources say GEM International and Namuun Trade are partners in this. Gem
produces vodka and beer, owns a cement factory, and is the majority share holder at G-Mobile.
Namuun has been producing Vitafit drinks for the last 10 years. Currently Pepsi is imported and sold
by Nomin Holding LLC, but things may change now.
The new plant will start production shortly and GN Beverages has already advertised in Ulaanbaatar
newspapers for 58 people to work as Area Manager, sales agents, Production Director, Distribution
Manager, General Accountant, Human Resources Manager, drivers and so on. All those hired will be
Mongolians.
Source: BCM Newswire
RIO TINTO SURVEY SHOWS PROFIT MAY GAIN 32%, JPMORGAN SAYS
Rio Tinto Group, the world‟s third-largest mining company, may report a 32 percent increase in
full-year profit according to its own survey of analysts, JPMorgan Chase & Co. has said.
Earnings before one-time items in 2008 may be USD9.8 billion, according to the median estimate of
analysts surveyed by Rio Tinto, up from USD7.4 billion a year earlier, JPMorgan analysts said in a
report last week. JPMorgan cut its underlying profit forecast for London-based Rio by 3.4 percent to
USD9.3 billion because of declines in commodity price forecasts. The analyst survey was dated
January 28.
The company is scheduled to report earnings February 12. It may report net income of USD11
billion, according to average estimate of 14 analysts.
JPMorgan reduced its price target on Rio stock by 15 percent, 36 percent less than its current price.
“Rio‟s heavy debt burden, its underperforming largest asset aluminum, its conglomerate status, its
heavy reliance on iron ore to support earnings, its lack of ability to pursue opportunities in the
weakened mining sector, will continue to hamper share price performance,” JPMorgan said.
Source: Bloomberg.com
CANADIAN COMPANY WINS CONTRACT TO SUPPLY HOUSING FOR MONGOLIA
A British Columbia company has been awarded a contract to supply homes to Mongolia, which marks
4. the beginning of a major initiative to alleviate an urban housing crisis in the country. “We‟re
building everything from the foundation up using B.C. wood, finishings and other building
products,” said Ray Greene of Pacific Homes. The CAD4 million project is supplying 48 town homes
in Ulaanbaatar. All major structural components – including floors, walls and ceilings – of the homes
will be built in Canada and then shipped via containers to Mongolia, where they will be assembled.
The population of Ulaanbaatar has increased by 500,000 in the last 10 years, putting tremendous
pressure on the city‟s housing stock. More than half of Ulaanbaatar‟s residents live in traditional
felt tents known as gers, in large unplanned communities that surround the city. These homes use
coal or firewood heating, have no sanitary services and limited access to water and electricity. The
Mongolian Government has prioritized the redevelopment of these areas into planned communities,
with a goal of financing 40,000 new homes by 2009.
It selected the Canadian building code system as a model, due to its internationally recognized
standards and the comparable climates between the two countries. The provincial government has
been working with the Mongolian Government for the past 18 months to adapt its building code to
Canadian standards and build capacity for a wood-frame housing sector. This included building two
demonstration homes in Ulaanbaatar that will now be used for training in construction and related
trades.
Source: http://www.journalofcommerce.com
PEABODY-POLO DEAL TO BE CLOSED IN FIRST QUARTER OF 2009
The recent agreement that gives Peabody Energy the option to purchase up to a 50% interest in a
joint venture holding Polo Resources Ltd's coal and mineral interests in Mongolia, and also grants it
warrants to enable it to acquire an approximate 15% equity interest in Polo, is targeted to close
during the first quarter of 2009, subject to the completion of Peabody's due diligence review and
other approvals.
Mr. Gregory H Boyce, Chairman & CEO of Peabody, has said that the transaction will “accelerate
the development of Peabody's presence in one of the world's premier undeveloped coal regions.
Because Polo has existing assets, coal resources and personnel in Mongolia, this advances our goal
of expanding our presence in high growth, high margin markets." Mr. Stephen R. Dattels, CEO of
Polo, has said that they are “excited about the opportunity to join forces with a company of the
caliber of Peabody. This alliance will provide the mining expertise and resources required to
develop our asset base and unlock the currently unrecognized value of Polo's Mongolian interests."
Source: Steelguru
MONGOLIA KEEPS MIDDLE RANK IN MINING RISK ASSESSMENT REPORT
This year‟s political risk assessment of countries of import to the mining industry by Behre Dolbear
finds Mongolia with scores similar to last year‟s, and with the same conclusion that its tax policies
are among the least investor-friendly. Twenty-five countries, which are host to major exploration
or mineral development efforts and/or mining operations, were ranked on seven criteria. Each
category under consideration was rated from 1 to 10 with the maximum score attainable for a
country being 70 points. Mongolia‟s tally was 32, and it tied at 13th
place with Tanzania.
The adherence to free-market ideals was the major consideration in the rankings under “the
economic system”, and here Mongolia scored 6. The assessment of the political system focused on
free elections, security of tenure, and a country‟s mining laws. Here Mongolia scored 4. “Social
issues” are the highest risk facing the development of mineral projects in every country. “The
watchwords for the industry are „sustainable development‟ and „social license‟”, terms that, “while
sound in principle, have often been used to delay or completely halt mining projects,” says the
report as it awarded Mongolia 5. The criterion of the timeframe involved in obtaining permits gets
Mongolia 6, while in corruption the score is 3. This rises to 6 in currency stability, which makes the
report a tad dated, and falls to 2 in tax regime. Australia tops the ranking with a score of 60 points,
followed by Canada (56). China (34) is at 10th
place, while Russia (18) is third from bottom.
The report concludes with an expression of concern about what the future holds for the mining
industry.
For the full text of the report, please visit BCM website, Articles/Reports.
Source: www.dolbear.com
5. STUDY SAYS MONGOLIA CAN EARN MORE IN TAX FROM MINING, IF IT LOWERS RATES
Professor James Otto (retired) has worked for governments, multilateral agencies, and mining
companies in over 50 nations and his books and studies on mining policies, laws, regulation and
taxation have become standard references for many governments and companies. Professor Otto
has lectured and presented workshops in Mongolia on the subjects of mining investment, country
risk analysis, and mine taxation, and is well known here for his study “Competitive Position of
Mongolia's Mineral Sector Fiscal System: the Case of a Model Copper Mine”. Published in 2003, this
study had a second edition in 2007, and has recently been updated.
The study offers a neutral-party examination of the Mongolian mining tax system, and specifically
looks at whether the current system imposes a higher or lower overall tax-take on new mine
investment than is imposed generally on copper mines in other nations, to examine whether the
system is internationally competitive, and to make recommendations for specific matters that
concern fiscal reform.
Overall the study concludes that the current high Effective Tax Rate in Mongolia (the combined
effect of all tax types and fees) is likely to lead to lower than optimal tax revenues in the future as
it is too high to attract fresh exploration and mining investment. The clear implication is that
Mongolia has the potential to realize additional fiscal revenues from the mineral sector by reducing
its effective tax rate. A lower effective tax rate will see more mines in operation, providing a
larger tax base.
For the full text of the study, please visit BCM website, Articles/Reports.
Source: www.ottomininglaw.com
WESTERN WITHDRAWS CASE AGAINST TINPO
Western Prospector Group Ltd. has announced it has discontinued legal action against Tinpo
Holdings and others after it determined that even a favorable judgment would not be of significant
benefit. The Ontario Superior Court has approved the discontinuance, on a without costs basis, of
Western's claim seeking specific performance, or alternatively damages, in connection with a take-
over bid for Western, guaranteed by Tinpo, that was withdrawn in late September 2008. Western
has said it “prosecuted the claim assiduously”, but concluded, based on information gathered in the
course of the litigation, that “any judgment it might obtain” would not be “effectively collectible
or enforceable at this time”.
Source: www.westernprospector.com
NEW MINING WEBSITE LAUNCHED
A new website, www.2tolgoi.mn, has been launched where viewers can find information, analyses,
and newsletters about the Mongolian mining industry. They can also post their comments. The site
is conducting a survey of public opinion on the negotiations regarding the two Tolgoi projects and
on other mining related issues. Readers can participate in the survey by visiting the site.
Source: Odriin sonin
ECONOMY
GROWTH MAY BE AS LOW AS 2 PERCENT, BAYAR IS BLUNT
The extraordinary session of Parliament began Thursday at 10 a.m. with Prime Minister S.Bayar
introducing the main item on the agenda -- the Government‟s action plan against the engulfing
economic crisis. He traced the course of the crisis in Mongolia, from the time the first symptoms
began to be felt in the second quarter of 2008. In July 2008 copper prices began falling, foreign
currency reserves started getting depleted soon afterwards, and the rate of inflation reached 34
percent in August.
The Economic and Social Guidelines for 2009 enjoin the Government to work for economic growth
rate of 10.1 percent. Bayar was blunt saying that this was unachievable. This could be as low as 2
percent, he said. The Government was hoping for 5% growth, but the IMF calculation was that it
would be 2.7 percent.
He mentioned the salient points in the plan: stabilizing the MNT, shoring up the banking system,
6. creating employment, developing agriculture, supporting herders, increasing food supply, and
investing in the energy sector. All this would require MNT1.5 trillion. “Mongolia does not have this
money. We have to revise our budget soon. The Government is trying hard to get money from other
sources such as international financial organizations,” he said.
After his speech, requests were received from around 30 MPs to be allowed to ask questions. In
private conversation the governing worry of most of them was to make sure that any investment in
their respective constituency was not chopped.
The session is expected to end on Friday.
Source: en.News.mn
SITUATION GRIM, FEELS CENTRAL BANK HEAD, BUT SEES NO NEED TO DESPAIR
Central Bank President L.Purevdorj has said both the economic and the financial situations continue
to be grim. Also, the ground reality keeps changing all the time. For example, the 2009 budget
approved by Parliament shows a deficit of 6 percent of the GDP, but developments impossible to
predict or prevent can easily increase this figure to 8-9 percent. The present foreign currency
reserve is enough for three weeks of import payments. However, prudent management will save
the day. Budgetary expenses have to be ruthlessly trimmed and the deficit reduced to the utmost
level possible. Some sort of understanding has to be reached with the IMF and other international
financial organizations so that they agree to help, but their resources are limited when seen against
the global entirety of the crisis. Mongolia will have to seek bilateral loans and attract foreign direct
investment. Whatever the final source of the money, “we will have to be responsible and
punctilious in the way we spend it”.
There was no doubt that the Central Bank was a key player at a time of crisis, but its capacity to
influence the situation was limited for various reasons. Also, “the situation is more difficult than
people realize” and they have to tread carefully. “Still we are doing what we can. We have started
negotiations with China‟s central bank to see if they pay us our dues in Yuan, and not in Tugrug. If
they accept our request, there will be an immediate improvement in the foreign exchange
situation. A similar request has been made to the Russian central bank.”
Asked about the oft-heard complaint that no commercial bank has as yet received the money from
the Mongolian Development Fund promised to them by Parliament three months ago, Mr. Purevdorj
said no bank has asked for the funds. Banks were wary of the conditions for the loan. For example,
the interest rate was high, and failure to repay on time would allow the Government to adjust the
loan against allotment of shares in the bank. He also thought the Government itself needed the
money as much as the commercial banks, if not more.
The mess at Anod Bank was still being sorted out. An IMF delegation has asked for more stringent
regulations. “Anod has become a test case. It is being seen as a mirror of the Mongolian banking
system and our success there will largely determine the trust international institutions and donor
countries repose in us,” he said.
A meeting with gold mining companies was planned where they would be asked to sell more gold to
the Central Bank. He would not speculate if the windfall profits tax had anything to do with the fall
in sale of gold, but would only say, “We know mining companies are excavating gold, but not selling
it to us. We are trying to change this situation.”
Source: Zuunii Shuudan
CRISIS MAY BECOME WORSE, WORLD BANK OFFICIALS WARN
World Bank representatives Mr. David Dollar and Mr. Arshad Sayed warned Parliament Speaker
D.Demberel at a meeting on Tuesday that Mongolia should be prepared for more difficult times as
copper prices are likely to stay low until 2010. They also said it might not be wise to use up the
country‟s scarce funds to shore up the MNT. “Its fall will lead to less imports and this will boost
domestic manufacture and production. This will have a good effect on the real economy,” said Mr.
Dollar, who is the Bank‟s Director for both China and Mongolia and is based in Beijing. Mr. Sayed is
the Bank‟s Country Representative here.
They warned that the budget deficit may grow to 10-11 percent of the GDP by the end of 2009 if
the economic situation does not improve. “If negotiations with the IMF are successful, Mongolia can
7. expect USD300 million in loans from the World Bank and the Asian Development Bank,” they said.
Demberel asked for World Bank help and support in these negotiations with the IMF, as well as with
other international financial organizations and donor countries.
Source: Ardiin Erkh
MNT 740 BILLION NEEDED IMMEDIATELY TO IMPLEMENT CRISIS PLAN
Parliament began a special session on February 12 to consider a partly completed draft action plan
to tackle the economic crisis approved by the Government last week. Noting that the global
situation seems only to be worsening, the Government decided that to protect the Mongolian
economy, it was imperative that economic growth should not fall below 4-5 percent; jobs should
not be lost; citizens should feel financially secure; and national economic stability maintained.
The plan estimates that Mongolia needs altogether MNT1.5 trillion to take measures to tide over the
crisis, of which about MNT740 billion is required urgently. Prime Minister S.Bayar has said Mongolia
does not have this money. “We need to take loans from foreign sources. If Parliament gives us the
right to do so, we will urgently start looking for them. We are planning to meet foreign investors in
February and March. We need to act on several fronts. There is need to revamp the social care
system, too,” he said.
According to the plan, the Government would make another stringent review of all proposed
expenses in the state budget, curb unproductive and inefficient public spending, revitalize the
banking sector, boost the employment rate, stabilize energy and heating supply, help create new
jobs by implementing the mine agreements, and also the 100,000 Apartment program, and offer
help to poor families.
Following instructions from the Speaker both the DP and MPRP groups in Parliament met on Monday
to discuss the draft plan. Prime Minister S.Bayar introduced the plan and explained its main points
to the DP group before answering several questions. The MPs‟ major concern was the uncertainty
about where the Tg1.5 trillion needed to implement the measures recommended in the plan will
come from. The meeting decided to support the plan, but only after Standing Committees improve
it by incorporating some clarifications and new ideas before it is discussed in Parliament.
Source: www.news.mn, Montsame
MPs GRILL FINANCE MINISTER ON SPECIFICS OF ACTION PLAN
Opinion on the merits of the draft action plan was evenly divided at Tuesday‟s meeting of the
Standing Committee for the Budget. Minister for Finance S.Bayartsogt was told more ministries
should have been involved in making the plan, that the plan did not define how much money would
be used in which sector, and there should have been some reference to agriculture.
The Minister said “not a single country has so far been able to gauge the extent of the crisis, and all
are constantly revising their plan of action”. About the use of money, he said if the loan from China
materializes, one-third of it would be used to set up a steel plant, and another one-third a cement
factory. MNT100 billion would be spent on generating jobs and an equivalent amount would go to
building roads. Production of coal, gold, and iron has to be increased. Ports where coal is
transported will work 24 hours a day.
When the Minister said investments in areas where new jobs are created will be given tax
concessions, Ms.
D.Arvin (MPRP) wanted to know specifically what was being envisaged. “You say you will spend
MNT100 billion on industrialization. Exactly what factories will you build?” she asked. Mr.
Bayartsogt referred her to the budget which allots MNT1 billion each to 21 provinces and nine
districts of Ulaanbaatar, and said details would be ready soon. Minister for Social Welfare and Labor
T.Gandi said there are plans to encourage businesses and lowering minimum wages. The number of
foreign workers will be reduced by 50 percent and vocational training facilities will be expanded.
Mr. Z.Altai asked why citizens are being kept in the dark and why their views are not being sought.
Earlier in the week, too, two MPs expressed their strong fears that the proposals in the plan were
not practicable. Mr. N.Batbayar (DP) said the plan was a copy of a similar Australian plan, and the
prescription will not work when the symptoms are specifically Mongolian. Ms. D.Arvin (MPRP)
complained the plan needs MNT1.5 trillion for its success, but is totally clueless about where this
8. will come from.
Source: en.news. mn
IMF WORRIED ABOUT ITS OWN RESOURCES
Time may be running out for Mongolia in its efforts to secure a hefty loan from the International
Monetary Fund (IMF) as its managing director Dominique Strauss-Kahn has expressed fears that the
IMF itself may be left with no resources in the next 6-8 months. “Today, the IMF‟s resources are
enough to face the current situation but because we are facing a global crisis, the needs may be
much bigger than previously. We have to intervene in Asia, Africa, central Europe, Latin America
and maybe elsewhere. I can‟t promise that in 6-8 months from now, we will have enough
resources,” he told the 44th Governor‟s Conference of the Southeast Asian Central Banks in
Malaysia.
Mr. Strauss-Kahn said monetary policy alone would not be enough to offset the disruption in
financial markets and the severity of the downturn, adding that not every country could undertake
fiscal stimulus. He felt some countries might need to contract their budgets rather than expand
them.
Source: The Telegraph, Kolkata
WORLD BANK URGES PRUDENT FISCAL MANAGEMENT
World Bank representatives in Mongolia recently sat with state organizations to present and
elucidate measures set out in a report recommending a course of action for the country to address
the economic crisis. The report is optimistic that a smooth handling of the present situation,
particularly wise management of the fiscal policy, will see clear improvement in the economy over
the next several years. Mining is likely to remain a significant source of public revenue in the
medium term. However, public expenditure has increased rapidly, limiting fiscal flexibility.
Parliamentary pressure has also led to budget changes without any input from the executive
branch.
There are four major recommendations in the World Bank report. These are: 1) Separate public
spending decisions from the mining sector each year; 2) Adopt fiscal rules which apply to the
medium-term budget framework and general budget to keep the non-mineral deficit under control;
3) Review good international practices and conduct consultations; 4) Draft legal provisions
according to international standards.
The review shows how Mongolia's external economic outlook is dramatically changing, highlighting
the need to manage mining revenues prudently so that what is earned during the “boom” years is
still there to be used during the "bust". Mongolia saved little of what it made in recent years, opting
instead to dramatically increase expenditures on wages and salaries, and on poorly-targeted social
transfers. Adopting a multi-year fiscal framework which sets limits to expenditure growth and debt,
and ensures transparency, can help. Since a significant amount of the past windfall revenues has
been spent (with pressure from Parliament), the country enters the downturn with little savings and
high inflation. Parliament‟s exercise of its constitutional rights to amend the budget should be
within the limits this framework sets on expenditure growth and public debt.
For the full report, as released to the Press, please visit BCM website, Articles/Reports on Mongolia
Source: Montsame
RESOURCE NATIONALISM ON THE RETREAT, SAYS IFC OFFICIAL
The drop in metals prices has forced a retreat in resource nationalism after boom times led
governments to seek more benefit from their countries' minerals, an official of the World Bank's
private sector lender said. The global financial crisis has forced a rethink by governments intending
to nationalize assets, while others such as Zambia have been forced to remove onerous new taxes.
"The boom in the commodity prices led to a real resurgence in resource nationalism and
participation in mining companies by governments across the world," said Mr. William Bulmer, who
heads the mining division, oil, gas and chemicals department at the International Finance
Corporation.
Bulmer said the main concern with nationalization is that countries may take control of national
9. resources, then fail to invest enough to keep up production levels to meet demand. "The World
Bank has been strongly urging governments not to go into such businesses," he said. The Bank
estimates that foreign direct investment to developing countries will shrink by 30 percent to about
USD400 billion this year. There is also no real example of successful nationalization of resources,
Mr. Bulmer added.
Zambia, Africa's top copper producer, was last month forced to turn back from its controversial
mining taxes and scrap a 25 percent windfall tax introduced at the peak of the commodities boom
last year. The Bank had not supported the windfall tax, Mr. Bulmer said. "Stepping back was the
right thing to do. A sliding royalty scheme that adjusts automatically as metal prices rise or fall
would be more appropriate."
Source: Reuters.com
40% DROP IN REMITTANCE FROM KOREA, MANY RETURN HOME
The situation is getting more and more difficult for Mongolians who went abroad to look for work.
The most popular destination for them, South Korea, has been hit hard by the global downturn and
opportunities there are shrinking faster than feared. Since June 2008, over 2,500 Mongolians have
come back home, unable to earn a living. Numerous small and medium sized enterprises went out
of business between October and December. They employed about 8,000 foreigners, including 1,000
Mongolians, all working under labor exchange contracts.
Official Korean Government data put the number of Mongolians living in Korea as of January 1, 2009
at 32,200. Of them, 1,717 are students, 2,325 have a Korean spouse, and some 27,000 are
employed. Of these, 16,800 are registered with the labor exchange, but the remaining 10,000 are
working illegally.
Remittance from abroad is usually an important part of the Mongolian economy, but this too is
showing strains. According to the Korea Exchange Bank, it transferred only USD20.7 million to
Mongolia in 2008, some 40 percent less than in 2007.
Source: Montsame
CZECH REPUBLIC TO REPATRIATE MONGOLIANS, WITH CASH DOLE
Rising unemployment among foreign workers in the Czech Republic has prompted the Government
to extend an unusual offer. Immigrant workers who agree to return home would receive a free
plane ticket and Euro 500 in cash. Foreigners account for about six per cent of the workforce in the
country, among them 7,500 Mongolians. The Government has allotted more than two million euro to
repatriate the first 2,000 foreigners in the following eight months, under a plan dubbed Aid to
Foreigners. "It will be cheaper than if the people stay here illegally and we have to deport them,"
an Interior Ministry spokeswoman said.
Interior Minister Ivan Langer said, "Many of these people could unfortunately end up with a difficult
financial problem and struggle for a living. Then there is a threat that they will end up in a grey
zone and become a part of criminal networks." Many of the foreign workers who lose their jobs do
not have enough money to buy a ticket home. They saved money to pay excessive fees or bribes to
some employment agencies promising to find them new jobs, the Minister said.
Source: The Sofia Echo, Reuters.com
FIRM TO CONSTRUCT OIL REFINERY WANTS A GUARANTEE
Toyo Engineering has completed its feasibility study on setting up an oil refinery in Mongolia, and
now wants a certificate of guarantee from the Government. The company needs this to be able to
apply for a loan from the Japanese Government before beginning construction in May. Prices of
equipment and facilities have fallen in recent months which should benefit Mongolia.
The refinery is expected to be operational by June 2012. Mongolia has an agreement with
Kazakhstan to import around 2 million tons of crude oil from there annually. The output from the
refinery should then be able to meet Mongolia‟s projected needs of around 1 million tons of diesel
and 700,000 thousand tons of petroleum in 2015. There will also be some commercial byproducts.
Source: www.olloo.mn
10. CHAMBER HEAD URGES IMMEDIATE END TO ALLOWANCES
Mr. S.Demberel, Chairman of the Mongolian National Chamber of Commerce and Industry, thinks
only 40 percent of the present economic crisis can be traced to external factors, with government
policy squarely to blame for the other 60 percent. He particularly singled out the reckless
government spending in the last two years, and said the payment of welfare allowances like those
given to children or new couples should be immediately halted. He also criticized the policy of the
Central Bank from the beginning to control money supply. The decision to stop commercial banks
issuing credit impaired economic activity very badly, and it would require at least MNT150 billion to
help the economy recover.
The Government has to find this money, and then has to reduce most forms of bureaucratic control,
like issue of licenses and permissions. All tenders also have to stop.
Source: Ardiin Erkh
“WE WILL CONTINUE TO PROTECT THE POOR,” SAYS MINISTRY OFFICIAL
Mr. D.Nyamkhuu, State Secretary in the Ministry of Social Security and Labor, has ruled out any
change in the basic social welfare laws and payments, no matter what form the financial crisis
takes. “The procedures could be revised so that we can make sure the money reaches the right
people, but the Government will not renege on its commitment to protecting the poor. This can be
done with proper regulations on labor and social care, despite the crisis in the economy,” he said.
Five percent of Mongolian children, mostly from well-off families, do not take the children‟s
allowance. He thought this was a good example of how to change the present regulations. “The
Government allocates money for all children, without any differentiation on the basis of the
family‟s income. This can be changed. We have MNT98 billion for 958,000 children. Let‟s just give it
to the poor among them.”
Source: www.news.mn
TRADE UNION OPPOSES RAISING HEATING, POWER CHARGES
The Confederation of Mongolian Trade Unions has told the Government it is against the proposal to
increase, under the pretext of an economic crisis facing the generating sector, heating and
electricity charges, only six months after they were raised. The CMTU feels households and
companies have been facing enough economic challenges of their own and any increase in these
rates will threaten their survival, as apart from what they will have to pay more for power and
heating, the price of everything will eventually go up.
Source: Niigmiin toil
PETROL PRICES FALL BY MNT 50-65 A LITER
Petroleum companies have lowered retail prices by MNT50-65 a liter as a lunar new year gift for
citizens. This gesture comes even as Rosneft, the Russian company from which Mongolia buys
almost all its petrol, has slightly increased its prices.
Source: Zuunii shuudan
4.6 MILLION TONS OF MINERALS EXPORTED IN 2008
Mongolia exported 4.6 million tons of 11 types of minerals such as coal, spar, zinc, lead,
molybdenum and copper concentrate as well as crude oil to Russia, China and some other countries
in 2008. These minerals were exported through 8 border ports including Bulgan, Shiveekhuren,
Gashuut Sukhait, Khavirga, Sukhbaatar and Zamiin-Uud.
Source: Onoodor
NEED TO REVAMP SOCIAL INSURANCE SECTOR STRESSED
A meeting was held recently between Ms. D.Oyunkhorol, Head of the Standing Committee for Social
Policy, Education, Culture and Science, and Mr. S.Ganbaatar, head of the Mongolian Confederation
of Trade Unions, on how they could cooperate in making the social insurance system more efficient
and productive, and eliminating corruption. Mr. Ganbaatar stressed the need to put into effect the
11. government decision to place the insurance fund under independent control. This would lead to
improved management of the money in the fund, and transparency in all operations would restore
public confidence. He criticized the National Board for Social Insurance for its overall failure to
meet its goals. Ms. Oyunkhorol seemed to agree and said the standing committee has already
established a working group to review the working of the entire Social Insurance Authority, and
particularly of the Board.
Source: en.news.mn
FEARS FOR CHINA’S WHEAT CROP, SOURCE OF MONGOLIAN IMPORT
Nearly half of China's winter crop - some 10m hectares of wheat and rape seed - is under threat
after a drought in eight northern and central regions. China's drought relief office has called it an
event "rarely seen in history". A meeting of China‟s State Council meeting has ordered Government
efforts to be directed at stabilizing grain production.
Any drastic fall in production will affect China‟s capacity to export wheat and raise prices. Neither
is a prospect that will encourage planners in Mongolia.
Source: http://news.bbc.co.uk
MNT2.8 BILLION NEEDED TO CREATE MEDICINE STOCK
The Health Ministry is asking for MNT2.8 billion to stock medicines to meet needs for three months.
Two factors have made it increasingly necessary to hold such a stock. First is the steadily rising
price of medicines, up 28 percent in the last year, and second is that, faced with a cash shortage,
more people are visiting state hospitals, stretching resources there.
Source: Ardiin Erkh
HIGHER INCOME TAX PROPOSED FOR CURRENCY TRADERS
The head of the Financial Regulatory Commission, Mr. D.Dugerjav, has suggested one way of
stopping private traders from speculating in foreign currencies and in the process sending the value
of the MNT plummeting. He wants a 48 percent tax to be imposed on the income traders make from
their exchange operations, an activity that calls for “very little investment but can make a huge
income”. If they are found to have earned a large amount of money suddenly, they should be taxed
accordingly at a higher rate, Mr. Dugerjav feels. If the Government and Parliament agree on the
tax, “it will stop currency devaluation”. Traders now pay 10 percent income tax and a fee to get a
license. Their real income is not clear.
Source: en.News.mn
POLITICS
BAYAR DID NOT NEED SURGERY IN SEOUL
Prime Minister S. Bayar drove straight to Government House from the airport on his return from
South Korea Friday afternoon. It now appears doctors there decided the crack in his rib was too
minor to call for surgical intervention. Mr. Bayar‟s first job back at work was to make a formal
request to the Speaker to convene a special session of Parliament on February 12 to discuss urgent
economic issues.
Asked if the session would also discuss the draft agreement on Oyu Tolgoi, Mr. Bayar said this was
most likely but negotiations were still going on with the investors. “These are difficult times.
Investors have their own financial and other constraints and the Government must get a deal most
profitable to Mongolia. But a meeting ground has to be found, and we hope will be found before the
session," he said.
Source: Montsame
PRESIDENT CANCELS VISIT TO 4 ASIAN COUNTRIES
President N.Enkhbayar‟s visits to Singapore, India, Brunei and Indonesia, scheduled to begin on
February 8, were canceled on February 5. No new dates were given. This was the time when the
12. Prime Minister was in South Korea for medical treatment but Mr. L.Orgil, advisor to the President
on Foreign Policy, denied that there was any connection between the late decision to cancel the
visits and the Prime Minister‟s injury.
www.business-mongolia.com
HEAD OF CIVIL AVIATION AUTHORITY DISMISSED
Mr. S. Batmonkh has been dismissed as head of the Civil Aviation Authority (CAA), for failure to
maintain standards of efficiency in the Government Implementing Agency. Over the years there
have been numerous complaints about the way the CAA functioned, leading to major technical and
aviation failures -- 33 in 2006, 46 in 2007, 45 in 2008, and 2 so far this year. The Government also
took strong note of the fact that the CAA overspent its budgetary allotment by MNT4.6 billion in
2006, MNT12.6 billion in 2007, and MNT7.6 billion in 2008. However, it has always met its projected
income since 2006.
Source: www.gogo.mn
JAPANESE WOMAN TEACHER ROBBED AND KILLED
The body of a Japanese woman, later identified as Chie Suzuki, 39, was found on a street near her
apartment north of the circus in the main shopping district early on Saturday morning. They called
the Police who would not confirm it was a murder, but would only say there were “external causes”
behind her death. She appeared to have been strangled.
Suzuki is believed to have left the Russian School No. 3 where she taught around 5 p.m. on Friday to
visit another Japanese teacher who lives near her apartment. She left her friend‟s place around 11
p.m. When her body was found, her belongings, including her purse, were missing. Police on
Tuesday arrested a 29-year-old man in connection with the death, saying Suzuki‟s cell phone and
purse were found in his room.
Suzuki first came to Mongolia in 1996 to work for JICA and stayed until 1998. She returned in 2007
to work at the school.
Source: Mainichi Japan, Reuters.com, Ardiin Erkh
MIAT CANCELS FLIGHTS TO BERLIN BECAUSE OF LOW TRAFFIC
MIAT has canceled two of its Ulaanbaatar-Moscow-Berlin flights and also the ones back from Berlin
this month because of low passenger traffic. Only 15 passengers were booked for the flight on
February 19 from here, and another 29 for the flight back. For the flights on February 26 the figures
were 12 and 26 respectively.
All intending passengers have been notified about the cancellation and, according to the airline,
there have been no complaints.
Source: Ardiin Erkh
MPRP FACES DEARTH OF EXPERIENCED ORGANIZERS
The Metropolitan unit of the MPRP held a conference on Monday in the backdrop of the recent law
that prevents government employees from holding membership of any political party. Most of those
faced with the choice have opted to keep their jobs, leading to a vacuum in the ranks of party
functionaries. Their places are being filled by new and relatively inexperienced people, many of
them in business. The MPRP meeting discussed how to train them quickly in organizational work, so
that the party can face the coming presidential election fully prepared, and without missing the old
faithful.
For the same reason the MPRP plenum on February 20 will be without 45 of its old delegates.
Source: www.news.mn
CHANGES MADE IN LAWS BY FORMER SPEAKER TO BE DISCUSSED
Mr. Ts.Nyamdorj had to resign as Parliament Speaker after the Constitutional Court ruled that he
had changed four references in the laws about VAT and 73 words in the law on income tax payable
by business organizations. That was many months ago, and nothing has been heard all this time on
what happens to the laws. Now the Standing Committee for the Budget has suggested that
13. Parliament needs to discuss the issue of whether the changes should be scrapped and the wording
of the laws reverted to their original form.
Source: en.news.mn
MONGOLIA IMPROVES SCORE ON HUNGER INDEX
The latest Global Hunger Index, the annual survey by the International Food Policy Research
Institute in conjunction with Welthungerhilfe and Concern Worldwide, ranks Mongolia 31st
among 88
countries surveyed on under-nourishment, prevalence of child malnutrition, and rates of child
mortality. Its index score has fallen from 18.9 in 1990 to 12.1 now. The lower the score on the
index, the higher is the performance. China ranks 15th
, with a score of 7.1.
Hunger is closely tied to poverty, and countries with high levels of hunger are overwhelmingly low
or low-middle income countries. The recent advent of higher food prices has uneven effects across
countries, depending on a range of factors, including whether countries are net importers or
exporters of food. Among the countries for which the GHI is calculated, net cereal importers, for
example, greatly outnumber exporters, implying that many more countries combating hunger are
likely to suffer from higher prices than benefit from them.
Source: www.ifpri.org
NO SCHOOL LAND TO BE GIVEN FOR OTHER USE
After signing an agreement with Mr. Yo.Otgonbayar, Minister of Education, Culture & Science, on
implementing the master plan on education between 2006 and 2015, Ulaanbaatar Mayor
G.Munkhbayar said on Monday he had ordered his officials not to allot any land belonging to
schools, kindergartens and other educational organizations to anybody for any other purpose. At
least 90 secondary schools and kindergartens will be built or renovated, easing the pressure on
existing facilities so that classes do not have to be held in shifts.
He revealed that he and the Minister had discussed building a large teachers‟ training complex in
Ulaanbaatar, as also a new national library. Arrangements will also be made to train professionals in
various fields meant to represent Mongolian interests in foreign countries.
Among the other issues discussed were providing loans to 50 teachers in each district to join the
40,000 Apartments program, ease conditions of loans against salary, supplying kitchen equipment to
schools, setting up at least two teacher training centers in every district, and giving financial
assistance to schools to buy computers and related equipment.
Source: Ardiin Erkh, Montsame
DRIVERS NOT WEARING SAFETY BELTS TO BE FINED MNT10,000
Encouraged by the results of a survey that found that fewer drivers wearing safety belts sustained
serious injury in accidents, the traffic police department has decided to enforce their use more
strictly. Drivers found without safety belts will now be fined MNT10,000.
Source: www.news.mn
THREE SAY CURRENCY TRADERS CHEATED THEM OF MNT90,000
Three victims have complained to the police that two currency traders in the Naiman Sharga
exchange center cheated them by MNT90,000 by placing a number of MNT5,000 banknotes among
MNT10,000 bills.
Source: en.news.mn
MONGOLIA ADOPTS THE UNIVERSAL ADDRESS SYSTEM
The Government of Mongolia has decided to adopt the revolutionary technology of the Universal
Address System for all location related services and products in Mongolia. Universal Addresses not
only possess all the functionalities of traditional addresses, but, more importantly, are unified
representations of all locations and areas in the world that can be used conveniently by both
consumers and professionals.
A Universal Address is an eight- or ten-character Natural Area Code (NAC) which can represent both
14. areas and locations anywhere in the world. A two-character NAC can specify any area about 1,000
km in length and width like a province, a four-character NAC represents a 30 km long and wide area
(like a city) approximately, a six-character NAC is roughly equivalent to any square kilometer area
on the earth, an eight character NAC can identify a 30 meter long and wide area (size of a house or
building) in the world, and a ten-character NAC can pinpoint any location in the world to the
resolution of one meter. Therefore, Universal Addresses are highly compact and human-friendly
codes that can be used as addresses, postcodes, geographic coordinates, area codes, property
identifiers, etc.
Marking Universal Addresses on house number plates, street signs and all other roadside objects will
physically digitize the land because Universal Addresses are the coordinates of the Universal Map
Grids. Thus, comparing the Universal Address of any destination and the one marked on the local
roadside object can immediately get the distance and direction to the destination and will
significantly help taxi, courier, delivery, especially ambulance, fire fighters and police find
locations.
Since Universal Addresses exist everywhere, mail with Universal Addresses can also be conveniently
sorted and delivered to any temporary locations in the world. This is well suited to Mongolia with
many yurts residing on temporary locations. Wide use of the system will dramatically improve the
postal service, emergency services, property and public works management systems, transportation
and tourism in Mongolia and make Mongolia a truly geo-technology advanced country.
Source: Source: PR-CANADA.net
SPONSORS
NEW MONGOLIAN LAWS
The following new amendment to a current Mongolian law was published in the latest weekly
Government Bulletin. Unless decided otherwise by Parliament, the law will take effect ten (10)
days after publication.
Bulletin Date Law
02.06.2009 Amendment on “Law of Official Document Permission and Warranty Fee”
15. Please visit BCM website, Legislative Committee, for a weekly listing summary of new Mongolian
laws commencing February 2009.
BCM members who wish a complete version of the law in Mongolian language are welcome to call or
email the BCM office (11-332-345; info@mongolia.org) to arrange for a convenient pickup.
_______________________________________________________________________________________________
ECONOMIC INDICATORS
MSE WEEKLY REVIEW
For the week ended February 6, 2009, trading activity on the Mongolian Stock Exchange (MSE)
totaled 582,300 shares with 27 companies traded. Total market value of transactions was MNT
113.5 million. Total market capitalization of the 358 stock companies listed on the MSE was MNT
448.2 billion, and decreased by MNT 2.1 billion, or 0.4 % from the previous week.
The Top-20 Index decreased by 80.92 points or 1.6% compared to the previous week closing at
4,863.49 points. The MSE Composite Index decreased by 0.11 points, no percentage change
compared to the previous week, closing at 2,456.49 points.
Most active stocks traded were: Olloo (408,500 shares), Genco Tur Buro (72,300 shares), Khun Gan
(32,100 shares), Moningbar (28,700 shares), and Zoos Bank (20,700 shares).
Major share price percentage gainers were: Buligaar (25.8%), APU (14.3%), Moningbar (13.3%),
Genco Tur Buro (12.8%), and Shivee Ovoo (10.0%). Major share price percentage losers were: Zoos
Goyol (27.1%), Khorinkhoyordugaar (13.3%), Baganuur (12.7%), Auto Impex (12.5%), and Talkh
Chicker (11.4%).
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
January 31, 2009 *20.7% [source: NSOM]
* year over year (yoy)
CURRENCY RATES – February 12, 2009
Currency name Currency Rate
US dollars US 1434.47
Euro EUR 1854.20
Japanese yen JPY 15.95
British pound GBP 2066.50
Hong Kong dollar HKD 185.06
Chinese yuan CNY 209.90
Russian ruble RUB 40.04
South Korean won KRW 1.03
Disclaimer: Except for reporting on BCM‟s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.