PRESENTATION

1. Business Council of Mongolia, Kempinski Hotel, Ulaanbaatar Mongolia, 27th August 2012
ImprovingTransparency in
Mongolia
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3. ТӨСЛИЙНУДИРДАГЧ:САНГИЙНЯАМ
-2-year project lead by the
Mongolian Ministry of Finance.
-Working with The University of
Sydney.
- Other partners include Financial
Regulatory Commission of
Mongolia and Mongolian Stock
Exchange.
- Funding provided by the Australian
Government (AusAID).
-The project goal is to improve
transparency and accountability in
the Mongolian public sector
Four project outcomes:
1) identify material deficiencies in
the current practice of public sector
disclosure;
2) build capabilities in key public
institutions in the areas of
disclosure;
3) develop a locally contextualised
best-practice framework; and,
4) design systems for the
aggregation and dissemination of
public sector performance that
conform to international best-
practice.

5. INTERNATIONALBENCHMARKS
A number of international ratings play a material
role in defining the quality of transparency and
accountability in Mongolia.
* Transparency International – Corruption
Perception Index
*World Bank – Doing Business Report
* IMF and World Bank – Observance 0f
Standards and Codes
*The Extractive IndustriesTransparency
Initiative
They aggregate data from:
•business surveys;
•assessments by risk analysts; and
•country experts from international institutions.

6. TRANSPARENCYINDEXRANKING
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010 2011
Mongolia ranking
All countries

7. TRANSPARENCYINDEXRANKING
61
45
52
58 60
73
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010 2011
Mongolia ranking
All countries
Perceptions of
corruption are
increasing

8. EASEOFDOINGBUSINESSRANKING
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010 2011 2012
Mongolia ranking
All countries

9. EASEOFDOINGBUSINESSRANKING
61
45
52
58 60
73
86
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010 2011 2012
Mongolia ranking
All countries
Regulatory
environment
constraining
business
activity

10. REGULATORYQUALITY
Worsening perception
of the ability of the
government to
formulate and
implement sound
policies and regulations
that permit and
promote private sector
development.

11. CONTROLOFCORRUPTION
Worsening perceptions
of the extent to which
public power is exercised
for private
gain, including both
petty and grand forms
of corruption, as well as
"capture" of the state by
elites and private
interests.

12. EXTRACTIVEINDUSTRIES
TRANSPARENCYINITIATIVE
2010 was the first year
that Mongolia was
considered compliant
Decrease in
discrepancies between
taxes and royalties
companies disclose
they have paid and the
amount government
discloses it has received
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2006 2007 2008 2009 2010
Company payments
Government reciepts

14. SOVERIGNCREDITRATING
Mongolia’s sovereign credit rating is ranked
as BB- (non-investment grade).
Comparative analysis suggests that
governance indications are comparatively
weak.
The sovereign credit rating is influential in
informing the investment decision choice and
the cost of borrowings for:
-The Mongolian Government
- Domestic banks
- Domestic private sector
- Foreign investors

15. SOVEREIGNRATINGCRITERIA
Source:Criteria For Rating Sovereigns, Standard & Poor’s
1 5432

16. SOVEREIGNRATINGCRITERIA
Source:Criteria For Rating Sovereigns, Standard & Poor’s

17. SOVEREIGNRATINGCRITERIA
Source:Criteria For Rating Sovereigns, Standard & Poor’s

18. SOVEREIGNRATINGCRITERIA
Source:Criteria For Rating Sovereigns, Standard & Poors

19. SOVEREIGNRATINGCRITERIA
Source:Criteria For Rating Sovereigns, Standard & Poors

20. SOVEREIGNRATINGCRITERIA
Source:Criteria For Rating Sovereigns, Standard & Poors

22. EASTASIADEBTISSUANCES
Source: Mongolia Quarterly Economic Update,TheWorld Bank, June 2012, p. 12

23. EASTASIADEBTISSUANCES
Source: Mongolia Quarterly Economic Update,TheWorld Bank, June 2012, p. 12
A+
AAA
A+
A+
A+
BBB-
BBB-
BB-

24. SAVINGSFROMFUTUREBORROWINGS
Mongolia’s National Development
and InnovationCommittee (NDIC)
estimate that Mongolia will require
USD$50 Billion in funding in next five
years (2013-2017).
If borrowing at BB- rating where to
remain at 5.75%, the annual interest
bill would be a staggering
USD$2.875 Billion

25. SAVINGSFROMFUTUREBORROWINGS
Mongolia’s National Development
and InnovationCommittee (NDIC)
estimate that Mongolia will require
USD$50 Billion in funding in next five
years (2013-2017).
If borrowing at BB- rating where to
remain at 5.75%, the annual interest
bill would be a staggering
USD$2.875 Billion
An improvement in sovereign credit
rating which leads to a one percent
(100 bps) reduction in interest
equates to USD$500 million in
savings every year for Mongolia.
These savings can be used to fund
other valuable economic and social
priorities for Mongolia.

26. CONTACT