Ulaanbaatar, May 1, 2024 /MONTSAME/. During its regular session on May 1, 2024, the Cabinet made the following decisions:

Cabinet Approves Resolution on the Implementation of Law on Mongolian Sovereign Wealth Fund

The Cabinet passed the Resolution on Measures to Ensure the Implementation of the Law on the Mongolian Sovereign Wealth Fund. 

“Erdenes Mongol” LLC's Board of Directors and CEO were tasked to oversee the deposit of MNT 299.5 billion from the dividends generated from state-owned and partially state-owned enterprises in mining and mineral processing in 2023 to the Savings Fund in accordance with the Law. 

Furthermore, MNT 200 billion from the Government’s dividend from “Erdenes Tavantolgoi” JCS’s 2024 net income will be deposited in advance to the Savings Fund.

The task of financing soft loans for housing from the Savings Fund generated in 2024 was given to Minister of Finance B. Javkhlan and Governor of the Bank of Mongolia B. Lkhagvasuren.

The task of establishing a consultation agreement with Singaporean National University researchers and Saving Fund advisors to introduce Singapore’s good practices to Mongolia, utilizing the Sovereign Wealth Fund in housing citizens, was reflected in the Resolution.

The Law of Sovereign Wealth Fund dictates that the Savings Fund, which supports the health, education, and housing of Mongolian citizens, will be funded by the dividends from state-owned shares in state-owned and partially state-owned enterprises in the mining and mineral processing industries.

The funds of the Savings Fund shall be deposited into an account of the Government Fund at the Bank of Mongolia. An Agreement between the Bank of Mongolia and the Government shall ensure that interest is accrued on the balance of the monetary assets at a rate not less than the policy rate.

Measures to Ensure Stable Flour Supply and Reserves

Following the Law on Customs Duty Exemption, the list of livestock feed, animal feed supplements, and wheat flour was approved. Implementing these policies and regulatory measures is expected to protect the animal husbandry sector from potential risks, facilitate a smooth winter and spring season by ensuring a stable supply of essential goods, maintain the availability of flour, a staple food for the population, and increase flour reserves without disruptions to the supply chain.

The Customs Tariff Rate for Cement Import Lowered to 5 Percent 

The Cabinet decided to lower the customs tariff rate for the import of cement to 5 percent. The amendment has been made in Government Resolution No.332 adopted in 2015 on "Determining the Customs Tariffs Rate for Sme Import Products." A deficit of the cement needed in Construction work is about to occur this year as the cement factories have not prepared a sufficient amount of raw materials and their fuel reserve. Therefore, the amendment dictates that the customs tariff for the import of cement has been lowered from 20 percent to 5 percent.