BCM NewsWire Issue 458

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 458 – December 23, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each
article is kept to a maximum of 150 words for brevity, but click on the link next to
“Source” to read the full article.
NEWS HIGHLIGHTS:
Business:
 Government unveils strategic plan for TT
 TT Investors to focus on more buyers, says Energy Resources CEO
 Turquoise Hill announces 2017 production and financial guidance
 Development Bank signs MoU with Russia’s Sber
 Arab investors consider financing infrastructure projects in Mongolia
 70% of Development Bank loans non-performing, says unnamed source
 Turkish Airlines’ flights suspended
 SOCO Receives USD10 mn partial payment for Mongolia asset sale
 Kincora increases private placement to CAD600,000
 New ski resort opens at Khui Doloon Khudag
Economy:
 Mongol Bank: T-Bills
 Mongol Bank lowers interest rates
 Speaker requests crisis relief from UAE, Kuwait
 Budget deficit at MNT2.6 tn
 Mongol Bank introduces new system for gold trade
 Government considers railway project to link with Khangi border port
 International Groups called in to assist with tough winter conditions
 Authorities warn of frigid temperatures, blizzards next week
 Mongolia Pegs $1 bn from India for oil refinery, pipelines
 Mongolia’s aging population
 Mongolia Year in Review 2016
 Mongolia adjusting to lower economic growth
 Mongolia to reduce fossil-fuel pollution
 Cabinet considers covering treatment costs for children sick with flu
 Mongolia may default in 2017 without urgent foreign funding, warns Eurasia
 Migration to the capital on the decline
 City workers equipped for snow removal in UB
 44 dead in last five years at Nalaikh coal mine

2. Politics:
 Bill promises stricter punishment for white-collar crime
 Cabinet reviews diplomatic affairs and economic development projects
 New Year’s public holiday to begin a day early on 29 Dec.
 Mongolia vows no more Dalai Lama visits after China turns screws
 Mongolia achieves milestone NATO partnership
 Mongolia May close embassies and consulate offices
 Nepal, Mongolia agree to extend bilateral ties, cooperation
 Mongolia and Taiwan to sign Olympics agreement
 Former finance minister charged with corruption by lawyers
 Zorig murder trial reopens with two witnesses
 Police arrest counterfeiting ring
 Mongolian contestant finishes as finalist in Miss World 2016
BCM Updates:
• Member-to-Member Special Offers & Benefits
Economic Indicators:
• Inflation
• Central Bank Policy Rate
• Currency Rates
*Click on titles above to link to articles.
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BUSINESS
GOVERNMENT UNVEILS STRATEGIC PLAN FOR TT
Mongolia has released a new plan to forward with a strategic investment agreement for
the Tavan Tolgoi coal mine that retains majority ownership for the government. Tavan

3. Tolgoi suffered from numerous stops and goes since commercial operations launched in
2011, However, the the latest plan has Mongolia taking 51 percent ownership of a joint
venture to build a new railway line to the Gashuun Sukhait border port to China through
the state-owned railway developer Mongolian Railways (MTZ). The plan also stipulates that
the development of these projects must hire Mongolian contractors and labor.
Last week, government officials met with representatives of Shenhua group, which as been
a lead figure in all of the attempts to broker a deal with private investors. Government
spokesperson Otgonbayar G. said the government would likely continue to pursue
consortium selected in 2014 that comprised Shenhua, Mongolian Mining Corp. and Japan’s
Sumitomo Corp. “Since project development is based on the previous contract, Sumitomo
and MMC will be involved in the project,” said Otgonbayar.
Source: UB Post
TT INVESTORS TO FOCUS ON MORE BUYERS, SAYS ENERGY RESOURCES CEO
Strategic investors for the Tavan Tolgoi coking coal mine are planning for a more
diversified sales strategy that includes deliveries to Japan, South Koran and India, said the
chief executive officer of one of the potentially investing companies. Mongolian Mining
Corp. has been in partnership with China’s Shenhua Energy and Japan’s Sumitomo Corp. to
invest in the Tavan Tolgoi mine since 2014. Parliament initially blocked the deal, it may be
back on the table with the new government promising better terms. “75 percent of the
product will be sold in China, and the remaining 25 percent will be sold to Japan, South
Korea and India among others,” said Battsengel Gotov, the chief executive officer of
Mongolian Mining Corp.’s coal mining unit Energy Resources.
The state-owned coal mine will need five or six years of development before it can reach
its full export potential, Battsengel said. Mongolia is also negotiating for a limited
investment period of 22 years.
Source: Udriin Sonin, News.mn
TURQUOISE HILL ANNOUNCES 2017 PRODUCTION AND FINANCIAL GUIDANCE
Oyu Tolgoi LLC is expected to produce 130,000 to 160,000 tonnes of copper and 100,000 to
140,000 ounces of gold in concentrates for 2017, majority shareholder Turquoise Hill
Resources Ltd. announced on 19 December. Open-pit operations are expected to mine in
Phase 6 during the year as well as continue the stripping of Phase 4, Turquoise said in its
2017 production and financial guidance released. In addition, stockpiled ore will be
processed during the year. The lower production compared to 2016 is primarily the result
of approximately one-quarter less copper head grade and approximately one-half less gold
head grade.
Operating cash costs for 2017 are expected to be approximately USD720 million, which is
also a reduction partly due to lower logistics costs from decreased production. Capital
expenditures for 2017 on a cash-basis are expected to be approximately USD100 million for
open-pit operations and USD825 million to USD925 million for underground development.
Source: Turquoise Hill Resources Ltd.
DEVELOPMENT BANK SIGNS MOU WITH RUSSIA’S SBER
The Development Bank of Mongolia has signed a memorandum of understanding with
Russia’s largest bank. Sber [Source does not include details to the aim or terms of the
partnership -ed]. Representatives of the Development Bank and Sber signed the agreement
during a visit paid by Parliament Speaker Enkhbold Miyegombo.

4. Mongolia and Russia’s trade over of USD1.1 billion for 2016 tallied in at USD1.1 billion, said
Enkhbold, or six times that of 2000.
Source: Undesnii Shuudan
ARAB INVESTORS CONSIDER FINANCING INFRASTRUCTURE PROJECTS IN MONGOLIA
Arab investing institutions will consider signing on to transportation and energy projects
for Mongolia. Parliament Speaker Enkhbold Miyegombo met with the president of the
Kuwait Foundation and the head of alternative investments for the Kuwait Investment
Authority pitching investment into new infrastructure, including roads and power plants,
for Mongolia. “We are currently focusing on cooperation with Mongolia in the road,
transportation and energy sectors,” said Abdul Wahab Ahmed ali-Bader, President of
Kuwait Foundation.
The speaker also made a request from the president of the UAE legislature, Amal Abdullah
Juma Al Qubaisi, to consider fostering investment into infrastructure projects for Mongolia
using the Abu Dhabi Fund for Development.
Source: Montsame, 2 News.mn
70% OF DEVELOPMENT BANK LOANS NON-PERFORMING, SAYS UNNAMED SOURCE
Heaps of bad loans it issued for project development may be crushing the Development
Bank of Mongolia, according to an unnamed source in government. Seventy percent of the
loans issued by the Development Bank is non-performing, according to a source with
knowledge of a closed door meeting led by Finance Minister Choijilsuren Battogtokh. That
includes MNT370 billion borrowed by the State Housing Corp., which oversees the portfolio
of state-subsidized mortgage loans.
The case may go to court soon, according to the source.
Reminder: Be wary of poorly cited news. This story is included based on a better-than-
most track record from the Source and interest to readers -ed
Source: Unuudur
TURKISH AIRLINES’ FLIGHTS SUSPENDED
Turkish Airlines has suspended flights to Mongolia because of poor visibility and snow
storms. The airline place a suspension on flights from Istanbul’s Ataturk Airport to Chinggis
Khaan International Airport beginning from 20 December.
Source: News.mn
SOCO RECEIVES USD10 MN PARTIAL PAYMENT FOR MONGOLIA ASSET SALE
SOCO International PLC on Tuesday said it received USD10 million from Daqing Oilfield Ltd
Co. on Monday as partial payment for the Mongolian assets it sold in 2005. SOCO said the
remainder of the USD52.7 million it was due to receive last month as a subsequent
payment amount in the transaction is outstanding and past due. The oil and gas explorer
said it intends to "fully enforce its rights for collection."
After receipt of the partial payment, SOCO said it has a cash balance of around USD91.0
million and is debt free. The group said its two wells on the Te Giac Trang field, Vietnam,
were drilled as per its approved batch drilling program and both have reached a total
depth.
Source: LSE.co.uk

5. KINCORA INCREASES PRIVATE PLACEMENT TO CAD600,000
Mongolia-focused metals explorer Kincora Copper Ltd is increasing the size of a private
placement it’s planning by 20 percent to CAD600,000. The new goal comes after receiving
high demand, the company said. The company has previously said that if the funding is
oversubscribed this private placement will close on or around 19 December.
Source: Proactive Investors
NEW SKI RESORT OPENS AT KHUI DOLOON KHUDAG
A new ski resort has opened 32 kilometers from Ulaanbaatar at Khui Doloon Khudag. The
resort is located at an area best known for horse racing during Naadam and will be a venue
for traditional winter games. The facility also offers ice skating.
Source: News.mn
ECONOMY
MONGOL BANK: T-BILLS
The Bank of Mongolia on 21 December issued MNT255 billion worth of one-week treasury
bills at a weighted annual interest of 14 percent. Also that day, it received MNT15 billion
in bids for 12-week bills with a face value of MNT15 billion (originally MNT100 billion) that
were sold at a discounted price and weighted average yield of 17.48 percent. It received
MNT5 billion in bids for 28-week bills with a face value of MNT5 billion (originally MNT10
billion) that were sold at a discounted price and average weighted yield of 17.5 percent. It
received MNT40 billion in bids for 52-week bills with a face value of MNT40 billion
(originally MNT80 billion) that were sold at a discounted price and weighted average yield
of 17.5 percent.
Source: Bank of Mongolia
MONGOL BANK LOWERS INTEREST RATES
The Bank of Mongolia lowered the benchmark for interest rates by one point to 14 percent
on 19 December. The rate cut follows a hike in August 15 percent amid pressing concerns
of economic collapse.
Source: News.mn
SPEAKER ENKHBOLD REQUESTS CRISIS RELIEF FROM UAE, KUWAIT
The parliament speakers has requested relief aid from the United Arab Emirates (UAE) and
Kuwait to help Mongolia overcome today’s economic challenges. Speaker Enkhbold
Miyegombo during a tour of the Arab nations requested a low-interest loan with eased
terms from the UAE during a meeting with the the Arab nation’s head of the legislature,
Amal Abdullah Juma Al Qubaisi.
Although Kuwait, too, is experiencing financial hardship because of the fall of oil prices, it
Emir Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah committed to some assistance.
Kuwait, which provided USD500,000 in aid to Mongolia for a 2000-2001 “dzud” winter
disaster and again last summer for flooding that occurred in Bayan-Ulgii Aimag. “Our side
will be willing to give a helping hand to our Mongolian friends,” said Al-Sabah.
Source: Montsame, 2, UB Post
BUDGET DEFICIT AT MNT2.6 TN
Mongolia’s budget deficit reached MNT2.6 trillion in the first 11 months of the year,

6. according to government statistics. The government reported a 26.2 percent increase in
total spending and lending to 7.7 trillion from the same period in 2015. Tax revenue grew
1.7 percent to 4.4 trillion, with the government citing expanded payments to social
welfare and more taxes collected from value added and excise taxes.
Source: Montsame
MONGOL BANK INTRODUCES NEW SYSTEM FOR GOLD TRADE
The Bank of Mongolia has announced that it’s gold purchases will follow the price listings
on the London Gold Fix. Mongolia offer highly reduced taxes for gold sales made to the
Bank of Mongolia as a way of beefing up its gold reserves. Previously it priced according to
the London bullion market. The London Gold Fix allows for blind transactions where
neither party knows the price before a declaration is made by a system determined with
input from five of London’s biggest bullion banks.
Source: Montsame
GOVERNMENT CONSIDERS RAILWAY PROJECT TO LINK WITH KHANGI BORDER PORT
A new 281 kilometer railway is in the planning stages by government to boost export
mineral trade. Parliament will vote to decide railway would run from the Zuunbayan
station to the Khangi border point following approval by the Jargaltulga Erdenebat
government on 14 December. The railway would be used chiefly for the transport of iron
ore and other raw material, with a capacity of at least 15 million tons.
The government has projected the trade of between 10 million and 21 million tons of
cargo from 2018 to 2015, and 21 million tons from 2026 to 2046.
Source: Montsame
INTERNATIONAL GROUPS CALLED IN TO ASSIST WITH TOUGH WINTER CONDITIONS
Direct relief assistance will be launched to help families with this year’s dzud winter
disaster within the next week, said the Mongolian Red Cross, with possible scale up to an
emergency appeal where it will be seeking support. Around 32 percent of all counties
nationwide have started to experience hardship. The weather forecast predicts
temperatures between -40 and minus -50Celsius in the come days some areas. The
National Emergency Management Agency (NEMA) estimates that it is 82 percent prepared
with hay and fodder at the provincial level, but less than 70 percent at some counties
because of budgetary constraints.
Mongolian Red Cross is conducting field assessments before disaster relief is launched. The
dzud of 2015-2016 was particularly harsh and the International Federation of Red Cross has
launched an operation to support the affected communities. This time around, unlike last
winter, it is expected that dzud may mainly affect the northern parts of the country.
Source: Relief Web
AUTHORITIES WARN OF FRIGID TEMPERATURES, BLIZZARDS NEXT WEEK
Authorities have warned against temperatures falling to -50 Celsius in the northern parts
of Mongolia next week, in addition to heavy snow fall. Above average snowfall has already
brought snow cover to 70 percent of Mongolia in what is turning out to be a very harsh
winter. The National Emergency Management Agency and Research Institute for Hydrology
and Meteorology of Mongolia have issued alerts to 110 counties in 13 provinces. This year,
the dense snow is making it difficult for animals to reach the grass they eat.
Food, Agriculture and Light Industry Minister Sergelen P. has meanwhile launched a

7. campaign to bring in donations to affected herders.
Source: News.mn, News.mn, Mongolia.GoGo.mn
MONGOLIA PEGS $1 BN FROM INDIA FOR OIL REFINERY, PIPELINES
Mongolia will seek approval from the Import-Export Bank of India to build an oil refinery
and pipelines with USD1 billion in infrastructure funding negotiated last year, a project
that could boost the nation’s gross domestic product by 10 percent. The government
intends to use USD700 million of the loan for an oil refinery and USD264 million for oil
pipelines, according to a statement on its website last week. Prime Minister Erdenebat
Jargaltulga has instructed relevant ministries to negotiate with the Ex-Im Bank of India,
according to the statement.
The 20-year loan will have an interest rate of 1.75% and principle payments will be waived
during the five years, according to the April statement. Mongolia imported 346,500 tons of
gasoline worth USD172 million and 479,800 tons of diesel worth USD219 million in the first
11 months of this year, according to the National Statistics Office. More than 97 percent of
the petrol and diesel was imported from Russia.
Source: Bloomberg
MONGOLIA’S AGING POPULATION
Mongolia may be famous for it’s young population, but it still has a growing aging
population, according to government census data. The number of people 60 years or older
grew by 16.1 percent over the past decade, representing 21.9 percent of the total
population now. The National Statistics Bureau said it expects the number of Mongolians
aged 60 and above to double over the next 20 years.
Source: News.mn
MONGOLIA YEAR IN REVIEW 2016
Slower economic growth and rising debt were the main themes of 2016, though Mongolia’s
new government is acting to restore foreign investor confidence and curb budget deficit
growth. The Mongolian People’s Party (MPP) has had to contend with a shortfall in revenue
from lower returns from the mining industry after a share rise in state expenditure. The
country’s year-end budget deficit is expected to reach nearly 20 percent of GDP, while
foreign direct investment is expected to fall sharply.
In mid-November Moody’s downgraded Mongolia’s government long-term issuer and senior
unsecured ratings from “B3” to “Caa1”, with a stable outlook. The new MPP government
has meanwhile reached out to the IMF, seeking to open negotiations towards obtaining
fiscal assistance to bridge budgetary and debt repayment gaps and improve liquidity in the
domestic economy. The MPP government has already moved to put in place measures
likely to be met with IMF approval, including cutting state spending and consolidating
budgetary expenditure.
Source: Oxford Business Group
MONGOLIA ADJUSTING TO LOWER ECONOMIC GROWTH
Mongolia’s economic growth prospects are brightening by the recent Oyu Tolgoi USD5.3
billion underground copper mine investment and from more diversification to the
agriculture sector. Despite the grim macroeconomic environment, numerous infrastructure
projects in transportation and cross-border trade logistics will spur future investments.
These projects include a new international airport, a northern rail connecting China to

8. Europe and a cross-border economic zone with China.
Mongolia is paying for the debt incurred during boom years by a severe drop in foreign
exchange reserves and a depreciating tugrik by 17 percent against the U.S. dollar. There
is also investor abandonment of this once high flying frontier economy. “Economic
fundamentals remain weak and unlikely to improve this year. I am not expecting any real
upturn until 2017,” said Steve Potter, the managing director for Wagner Asia Equipment
LLC, a Caterpillar (CAT) mining equipment distributor in Ulaanbaatar.
Source: American Journal of Transportation
MONGOLIA TO REDUCE FOSSIL-FUEL POLLUTION
Mongolia will spend MNT5 billion combating air pollution in 2017, and more than half will
go toward subsiding electricity costs for residents of Mongolia's so-called ger districts.
Ulaanbaatar is one the world’s most polluted cities with 10 times as much air pollutants as
recommend by the Mongolian Air Quality Standards and 6-to-7 times more than the most
lenient World Health Organization targets. Air pollution in Ulaanbaatar’s air pollution
comes dust blown in from the steppe, unpaved roads and open areas lacking vegetation.
But for Ulaanbaatar, ash and emissions from coal stoves, power plants, boilers, and
vehicles are the main culprits.
Ulaanbaatar annually burns 5.9 million tons coal, and 10 percent of this is from ger
districts residents with coal-fired stoves for cooking and staying warm. Government will
give subsidize all of the costs for running electricity at night for ger district residents to
encourage electric heating over burning in stoves.
Source: News.mn
CABINET CONSIDERS COVERING TREATMENT COST FOR CHILDREN SICK WITH FLU
The prime minsters has allocated MNT1 billion for covering the costs of treatments and for
medicine for children with respiratory ailments. Prime Minister Erdenebat Jargaltulga has
tasked his cabinet members with measures such as revising regulations to facilitate
parental leave for those with children ailing from respiratory illnesses and possibly
coverage for treatment. According to a presentation by the Health Ministry, 5.5 percent of
all patients have respiratory illnesses. Hospitals are also suffering from overcrowding, with
Ulaanbaatar healthcare facilities reporting that they were 18.5 percent over-capacity last
year.
Nearly 90 percent of the patients suffering from acute respiratory infection are children
aged below four years. Of those patients, 35 percent are infants younger than one year-
old, 56 percent have contracted pneumonia and 22 percent have acute bronchitis.
Source: Montsame
MONGOLIA MAY DEFAULT IN 2017 WITHOUT URGENT FOREIGN FUNDING, WARNS
EURASIA
A political snafu with the world's second-largest economy is no light matter for any country
but for troubled Mongolia, it could mean a potential sovereign default. While President Xi
Jinping's administration began talks on the matter, negotiations adjourned following a spat
over a visit by the Dalai Lama to Mongolia in November. That could leave Ulaanbaatar at
high risk when a USD580 million bond from the Development Bank of Mongolia matures in
March. "The suspension of China talks will increase concerns in the market about a possible
default by the spring," Emily Stromquist, senior analyst at Eurasia, said in a note on
Tuesday.

9. "Previous talks with Singapore broke down after Mongolia deemed their lending conditions
to be too strict and the interest rates too high. Japan offered financial support, but only
through institutions such as the Asian Development Bank or the International Monetary
Fund (IMF), assuming Mongolia chooses to comply with the standard rules for engagement,"
Stromquist noted.
Source: CNBC
MIGRATION TO THE CAPITAL ON THE DECLINE
Ulaanbaatar is no longer the magnet for migration as poverty and social ailments run
rampant throughout the so-called ger districts. Ulaanbaatar has seen the migration people
each year from the country lesses somewhat from of between 6,000 to 9,000 since 2014
and 2015. Movement from the capital to the countryside has increased slightly, reaching
1,000 in 2014.
Source: Undesnii Shuudan
CITY WORKERS EQUIPPED FOR SNOW REMOVAL IN UB
Drivers and pedestrian of Ulaanbaatar rejoice, as the city is now using new equipment for
keeping streets and walk paths clear of snow and ice this year. From 20 December, 317
city workers will be using its three snow blowers and machines for removing snow from
pavement, in addition to hand tools. The city also has 11 heavy trucks to spray chemicals
for melting the ice on the roads.
Source: Mongolia.GoGo.mn
44 DEAD IN LAST FIVE YEARS AT NALAIKH COAL MINE
Accidents at the Nalaikh coal mine have resulted in 44 deaths over the last five years,
according to local authorities. A lack of employment opportunities has driven swaths of
young men to Nalaikh’s coal mines, but small-scale mining is one of the most dangerous
professions in the country. Since 2012, there have been reports of 55 serious injuries and
44 deaths. Meanwhile, authorities have opened 86 cases from unsafe mining practices,
including 18 that went to court.
Authorities have banned 6 individuals from mining for between one and two years, while
12 people have received prison sentences of up to four years for mining without licenses.
Source: Unuudur
POLITICS
BILL PROMISES STRICTER PUNISHMENT FOR WHITE-COLLAR CRIME
So-called white collar criminals may face stiffer penalties if a new bill is passed. Prime
Minister Jargaltulga Erdenebat's Cabinet approved the law, which set the minimum prison
sentence at six months, for submission to Parliament on 14 December for economic crimes
such as embezzlement or corporate fraud. The bill also expands the criminal code to
include making purchases at above-market prices, which is a tactic for corrupt officials to
bring revenue to favored companies.
Source: Montsame
CABINET REVIEWS DIPLOMATIC AFFAIRS AND ECONOMIC DEVELOPMENT PROJECTS
Drunk drivers could face higher fines and even jail time with tougher regulations under
review by Prime Minister Erdenebat Jargaltulga Cabinet. The Cabinet at a 14 December

10. meeting agreed to consider harsher punishments impaired drivers under the influence of
drugs or alcohol. The bill proposes fines between MNT384,000 and 768,000 for offenders,
and between seven and 30 days of prison to offenders.
Source: UB Post
NEW YEAR’S PUBLIC HOLIDAY TO BEGIN A DAY EARLY ON 29 DEC.
The Jargaltulga Erdenebat government has declared a public holiday for 29 December to 1
January for New Year’s, citing the need to give the public time off amid outbreaks of flu
and other illnesses. On 14 December, the prime minister’s cabinet declared the expanded
holiday from what used to begin on 30 December.
Source: Montsame
MONGOLIA VOWS NO MORE DALAI LAMA VISITS AFTER CHINA TURNS SCREWS
Mongolia’s government pledged to extend no more invitations to the Dalai Lama after
China signaled that a trip last month by the exiled Tibetan spiritual leader could derail
ties. “The Dalai Lama’s visit by the invitation of Gandan Monastery negatively affected
two countries and these two countries have a misunderstanding,” Mongolian Foreign
Minister Munkh-Orgil Tsend told the Unuudur newspaper Wednesday. “The government
feels sorry for this,’’ he said, adding that the Dalai Lama “probably won’t be visiting
Mongolia again during this administration.’’
China called off talks with Mongolian senior officials after the Dalai Lama’s four-day visit
to Ulaanbaatar beginning 18 November. Mongolia has been seeking soft loans from sources
including China and the International Monetary Fund as it struggles with a USD1 billion
budget gap and looming debt repayments.
Source: Bloomberg
MONGOLIA ACHIEVES MILESTONE NATO PARTNERSHIP
Mongolia graduated its second Staff Officers Course class and declared a new capacity for
the faculty of the Mongolian National Defense University at a ceremony held on 13
December 2016 at the Ministry of Defense in Ulaanbaatar. These achievements were made
possible by NATO's Defense Education Enhancement Program (DEEP), which is "providing
Mongolian officers the opportunity to gain knowledge and skills to carry out their duties in
international peacekeeping operations," explained the Mongolian National Defense
University President Major General Yadmaa Choijamts.
Part of Mongolia's partnership with NATO, DEEP has been increasing the impulse for
reform, by actively supporting transformational change in the Mongolian professional
military education system. This has helped to modernize teaching methods and carve out a
niche for Mongolia as a provider in NATO and partner education and training community.
Source: NATO
MONGOLIA MAY CLOSE EMBASSIES AND CONSULATE OFFICES
Mongolia has proposed the closure of embassies and consular for savings during economic
crisis. Embassies in Brazil and Indonesia, in addition to the consular offices in Osaka, Japan
and Hailar, China may close with Parliament’s approval. The government has cited the few
few Mongolian citizens living in these countries as well as the consular services that can
now be done online. Mongolia will, however, establish a new consulate in Shanghai and
upgrade its consulate office into an embassy in Bishkek, the capital of Kyrgyzstan.
Foreign Affairs Minister Munkh-Orgil Tsend said the ministry has proposed closing the

11. embassies along with a 20 percent budget cut next year compared with 2016. However, a
portion of the lesser costs for next year is the added expenses in 2016 from having host the
Asia-Europe Meeting. Closing the embassies by next May would save the government
between up to USD800,000 for next year, Munkh-Orgil said, and up to USD1.8 million each
following year.
Source: News.mn, Montsame
NEPAL, MONGOLIA AGREE TO EXTEND BILATERAL TIES, COOPERATION
An agreement has been reached between Nepal and Mongolia today so that the diplomatic
passport bearers and government officials of both countries would not be obliged to take
visa for visit to each country. The Ministry of Foreign Affairs has believed that this step
would help strengthen bilateral ties in the days ahead. Minister Munkh-Orgil Tsend is
currently here on a three-day visit to Nepal from yesterday.
Following the meeting, Munkh-Orgil’s counterpart, Prakash Sharan Mahat briefed the
journalists that they agreed to form a think tank including representatives from the both
countries and aimed at studying the common interests and the needs of the landlocked
countries, as proposed by Mongolia. He added that Nepal was positive regarding the
proposal and assured support for the same. Mahat said an agreement between the two
countries had been made for Mongolia to set up a monastery in Lumbini,
Source: The Himalayan Times
MONGOLIA AND TAIWAN TO SIGN OLYMPICS AGREEMENT
Mongolia and Taiwan have signed a bilateral co-operation agreement in Taipei for joint
training for the Olympics as well an exchange for athletes and coaches. The Presidents of
the Mongolian National Olympic Committee (MNOC) and the Chinese Taipei Olympic
Committee (CTOC) have signed a bilateral co-operation agreement in Taipei. MNOC started
cooperating with Taiwan, also known as Chinese Taipei, in 1994, with Mongolian boxing
and freestyle wrestling coaches having previously worked in Taipei. Taipei is due to host
the 2017 Summer Universiade in Taipei and the 2019 East Asian Youth Games in Taichung.
Source: Inside the Games
FORMER FINANCE MINISTER CHARGED WITH CORRUPTION BY LAWYERS
A group of lawyers have charged a former finance minister of accepting bribes as payment
for the 2009 Oyu Tolgoi agreement and shown documents they allege to be a banker’s bill
from Credit Suisse as proof. Tuyatsetseg Ts. of the Mongolian Lawyers' Environmental
Association has alleged that a USD9.2 million held in a Swiss bank account by former
deputy speaker Bayartsogt Sangajav on 27 October, 2009 was bribe money as thanks for
the Oyu Tolgoi investment agreement he helped broker that year. The International
Consortium of Investigative Journalists revealed that Bayartsogt had an offshore company
registered on the British Virgin Islands (BVI) and a Swiss bank account in 2013 with about
USD1 million. Bayartsogt admitted to the existence of the BVI company and Swiss bank
account when the news hit.
Only about USD2,000 remain in the account today, the lawyers said. They added that
Bayartsogt was under investigation by Swiss authorities for embezzlement as of 27 June.
Source: News.mn
ZORIG MURDER TRIAL REOPENS WITH TWO WITNESSES
A trial launched on 21 December for the murder of Democratic hero Zorig Sanjaasuren

12. almost two decades ago. The court hearing official begaon at 10:30 that day with Aldar M.,
Munkh-Erdene B. and Oyunchinmeg S. sitting on the panel of judges. The defendants are
Amgalanbaatar Ts. and two others [Source does not include their names -ed]. Two
witnesses are expected to testify during the proceedings.
On 2 October 1998, Zorig, who was then Mongolian Minister of Infrastructure, was brutally
murdered just as he was expected to be name the next prime minister.
Source: News.mn
POLICE ARREST COUNTERFEITING RING
Police have arrested members of a counterfeiting ring accused of printing fake bills that
tallied MNT15 million. The case is currently under investigation by the prosecutors' office.
A conviction for producing counterfeit currency carries a maximum sentence of 10 to 15
years imprisonment.
Source: News.mn
MONGOLIAN CONTESTANT FINISHES AS FINALIST IN MISS WORLD 2016
The Mongolian beauty pageant contender for Miss World took a win for the talent portion
as a finalist of this year’s competition. Stephanie Del Valle of Puerto Rico was crowned
Miss World 2016 on Sunday, edging out runners-up from the Dominican Republic and
Indonesia winning the top prize in the 66th edition of the pageant held this year in the
United States.
Miss Mongolia Bayartsetseg Altangerel was named a finalist in the Miss World 2016
Competition in Oxen Hill, Maryland on 18 December.
Source: Telegraph, International Business Times
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ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]

13. Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
Year 2015 *1.9% [source: NSOM]
November 30, 2016 *0.2% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: -0.6% y-o-y - Ulaanbaatar City, November 30, 2016
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
May 6, 2016 10.50% [source: Mongol Bank]
August 18, 2016 15.00% [source: Mongol Bank]
CURRENCY RATES – 22 DECEMBER 2016
Currency Rate
U.S. dollar USD 2,490.34
Euro EUR 2,599.42
Japanese yen JPY 21.17
British pound GBP 3,078.93
Hong Kong dollar HKD 320.85
Russian Ruble RUB 40.96
Chinese Yuan CNY 358.50
South Korean Won KRW 2.07