Foreign trade surplus increases
In the first five months of 2017, Mongolia traded with 133 countries and total trade turnover reached USD 4,016.2 million, of which USD 2518.5 million were made up by exports and USD 1497.7 million, by imports. Total foreign trade turnover increased by USD 1.1 billion, in which, exports increased by USD 744.3 million and imports, by USD 325.7 million, compared to the same period of 2016.
Rail transport revenues grow
In the first 5 months of 2017, 8.4 million tons of freight and 1 047.1 thousand persons (double counting) were carried by railway. Compared to the same period of previous year, the number of carried freight increased by 943.9 thousand tons (12.6%) and the number of carried passengers decreased by 15.8 thousand persons (1.5%).
Meeting addresses SMEs access to finance in Mongolia
The European Bank for Reconstruction and Development (EBRD) in Mongolia is holding a donor coordination meeting today, June 13, to address the current situation, obstacles in and solutions to SMEs access to finance in the country.
World Bank to support Mongolia’s efforts to improve fiscal and financial stability
On June 9, the World Bank approved USD 12 million in financing to help strengthen fiscal and financial stability in Mongolia at a critical juncture for the country’s economy. The Strengthening Fiscal and Financial Stability Project will work across sectors to improve the quality of expenditure management, bolster financial sector stability, increase fiscal discipline, and strengthen the social protection system. Comprehensive support will be provided to strengthen budget preparation in all stages, starting from preparation to execution.
EBRD approves new country strategy for Mongolia
The EBRD Board of Directors has adopted a new country strategy for Mongolia which outlines the Bank’s investment priorities in the country for the next four years. The strategy builds on the Bank’s strong operational engagement in Mongolia and identifies as strategic priorities for the EBRD’s work in the country:
Railway wagons assembled in Mongolia
The first ever railway wagons that assembled in Mongolia, were transferred into service on 09 June, with joint efforts by the Ministry of Road and Transport Development, ‘Mongolian Railway” joint venture and private sector. Engineers of the Wagon Repair Department in Zuunkharaa, Selenge aimag noted that the five wagons assembled in Mongolia will serve for 30-32 years, while imported wagons from Russia and China have a useful life of 20-25 years.
MAK inaugurates cement factory in Dornogobi
On June 10, Saturday, Prime Minister J.Erdenebat attended an inauguration ceremony of Mongolyn Alt Corporation’s ‘MAK – Euro cement’ factory, and remarked on its potential to minimize cement import.
Over 20 delegates to join AmCham’s Annual U.S. Trade Mission
The American Chamber of Commerce (AmCham) in Mongolia will host its fourth annual U.S. Trade Mission on June 12-14, 2017, in Washington, D.C. under the leadership of the Honorable Jennifer Zimdahl Galt, U.S. Ambassador to Mongolia.
Counselling on cultivation being provided during open day event
Open days of food, agriculture and light industry sector are taking place on the Sukhbaatar Square. Crop planting has been made on 450 thousand ha of land nationwide and herders have received 20.6 million heads of offspring, highlighted State Secretary of Ministry of Food, Agriculture and Light Industry L.Bayartulga in his opening speech. He also noted that within the sector’s policy, several programs will be implemented, including First campaign of Meat and Milk, Mongolian animal, Cashmere, Third Cultivation Campaign and Industrialization 21:100.
Khukh Tsav Cement Plant to begin operation
The opening ceremony of Mongolyn Alt Corporation’s (MAK) Khukh Tsav Cement Plant is taking place today, on June 9. The cement plant, which was planned to start operating in the first quarter of 2017, is capable of processing 1 million tons of cement per annum. Located in Dalanjargalan soum of Dornogobi aimag, Khukh Tsav Cement Plant was established with a total investment of USD 331 million.
Excise tax on hybrid cars to be refunded
During the Parliament’s plenary session on June 8, the first reading of bill on Excise tax procedural regulations was held. In order to join the Extended Fund Facility program of the International Monetary Fund (IMF), amendments were made to the Excise Tax Law, resulting in excise taxes to be imposed on hybrid, natural gas and electric vehicles. Specifically, these types of cars, which had been exempt from excise tax, started paying taxes between MNT 375,000 and MNT 6,675,000 based on the vehicle's date of manufacture since May 1.
MNT 50.5 billion issued for mortgage in May
The Government and Bank of Mongolia provided financial source of MNT50.5 billion to commercial banks for mortgage loans in May. 722 citizens were granted mortgage from this source. The Bank of Mongolia funded loans of MNT15.9 billion with its primary payments of its mortgage guaranteed bonds while 457 citizens mortgage loans of MNT34.6 billion was financed from the State budget.
SME boosting subprograms discussed
A discussion on subprojects “Made in Ulaanbaatar” and “Partnership of local industries’ was held at Tuushin hotel. These subprojects put goals to create jobs and improve competitiveness of trade, industries and services through implementing flexible investment and market policy targeted to small and medium enterprises and cooperatives, which run their activities in Ulaanbaatar, supporting producers in cluster, increasing sales of products with label and mark “Made in Ulaanbaatar” by promoting them.
Introduction of European standards in railway to be learned from Poland
An intergovernmental agreement between Mongolia and the Republic of Poland on international auto transportation cooperation will be established in the near future to regulate transportation relations between the two countries more properly and to create favorable facilitated conditions for travelling.
FDI in Mongolia reaches USD 178.1 million
Foreign direct investment (FDI) inflow in Mongolia averaged USD 178.1 million as of April 2017, which was down by 39 percent compared to the same period of last year. As for the FDI outflow from Mongolia, it increased by 15 percent to USD 4.4 million. The net flow amounted to USD 173.8 million, which is 40 percent less than last year. Bank of Mongolia informed that the Balance of Payment showed USD 75.2 million surplus at the end of April.
Deutche Bahn company to support constructions of new railways
Mongolian delegation headed by Minister of Road and Transport Development D.Ganbat attends the International Transport Forum’s 2017 Summit on Governance of Transport from May 31 to June 02 in Leipzig, Germany. The delegates are learning from international experiences on transportation governance, paying particular attention to organizing subway project and development of policy on freight distribution.
ADB begins new Mongolia partnership with USD 250 million to avert crisis in social services and banking sector
The Asian Development Bank (ADB) Board of Directors has endorsed a new Country Partnership Strategy (CPS) for Mongolia, which envisages total assistance of USD1.2 billion over the 2017-2020 period, and also approved two policy-based loans (PBLs) totaling USD250 million to start implementation of the new CPS. The loans will help maintain funding for social welfare programs for the poor and vulnerable people and stabilize and restructure the banking industry during the implementation of an extended fund facility of the International Monetary Fund (IMF) approved on 24 May.
Project to Climate Proof Forest Resources kicks off with workshop
The Asian Development Bank (ADB) and the Government of Mongolia today kicked off a USD 500,000 capacity development technical assistance project to increase the resilience of Mongolian forest ecosystems to climate change with an inception workshop. In attendance were M. Tungalag, Director for Department of Forest Policy and Coordination, MET, and Satomi Yoshini of the Japan International Cooperation Agency.
Cashmere price falls
Cashmere price has dropped compared to the beginning of this month at the Agricultural Commodities' Exchange. Today, unprocessed white cashmere of 27500 kg and dark/brown cashmere of 19160 kg were sold at the exchange for MNT70888-72411. Cashmere price was MNT84000 at the beginning of the month. Sheep wool price was MNT1220-1300.
Preparation works to start some major projects completed
Within the implementation of the Government action plan in 2016-2020, preparation works for starting projects of Tavantolgoi, Gatsuurt and Bagakhangai power plant have completed, said Finance Minister B.Choijilsuren. Today, Budgetary standing committee of Parliament held the first hearing of Parliamentary resolution draft on adaptation of Basic guidelines of social and economic development of Mongolia in 2018. The Finance Minister and other officials answered questions of parliament members during the discussion.