|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
Chinese Premier Li Keqiang says his country will fulfill its commitments in the Paris Agreement on climate change.
Li was speaking at a joint news conference with German Chancellor Angela Merkel in Berlin on Thursday.
He touched on reports that US President Donald Trump will soon make a decision on whether to pull his country out of the landmark climate deal.
Li expressed resolve that China will continue tackling global warming in cooperation with the international community, despite any decision by the US.
Li also suggested that China is ready to offer financial assistance to island nations vulnerable to climate change.
Merkel welcomed Li's comments, saying she is glad China will continue to pursue the Paris deal.
Chinese Foreign Ministry spokesperson Hua Chunying told reporters that Beijing will continue with its measures against climate change even if other countries change their position.
She added that Beijing will sincerely implement the Paris deal.
As the world's largest and second-largest emitters of greenhouse gasses, China and the US had played a leading role on the issue until Trump took office.
Funding facility with up to US$ 16 million will help company increase retail and production
In a boost to the local economy the EBRD is extending new financing to Gobi JSC, a leading cashmere garments maker in Mongolia. The funding facility, with a volume of up to US$ 16 million, will support the crucial sector and contribute to a more resilient and sustainable economy.
Cashmere is a key export commodity for Mongolia, second only to products from the mining industry. Developing a sustainable cashmere industry and value chains is one of the EBRD’s strategic priorities in Mongolia, where the Bank supports diversification from the mining sector.
Gobi JSC is the largest vertically integrated cashmere and camel wool processor and garments manufacturer in Mongolia. The EBRD financing will support the opening of a new flagship store in the Ulaanbaatar Galleria, a new shopping mall in the country’s capital. It will also finance a capacity increase and the modernisation of sewing equipment. Gobi JSC will increase purchases of raw cashmere from herders in remote areas to expand production of garments.
The company, a long-standing client of the Bank, will obtain a total of US$ 16 million in EBRD financing: a US$ 12 million six-year loan and a US$ 4 million working capital facility for up to three years. The working capital facility will provide Gobi JSC with more flexibility, allowing the company to access funds as necessary for seasonal purchases of raw material.
Irina Kravchenko, EBRD Head of Mongolia, said: “We are proud to support Gobi JSC’s expansion. The company shows that Mongolia can produce not only raw cashmere for foreign garments manufacturers, but that it can itself make desirable, quality clothes. We are also working with other stakeholders in the cashmere industry to improve sustainability and quality standards.”
Baatarsaikhan Tsagaach, CEO of Gobi JSC, added: “Firstly, we would like to express our appreciation to the EBRD team for contributing to the development of the manufacturing sector in Mongolia, specifically the cashmere industry. We are pleased that Gobi JSC has been successfully cooperating with the EBRD since 2009. In this period we have become the largest cashmere producer in Mongolia and the face of Mongolian cashmere on the international arena. We believe that the long-standing relationship with the EBRD is one of the important factors that contributed to our success.”
Mongolia produces about 50 per cent of the global supply of raw cashmere, which is a reliable source of income for nomadic herders, bolstering a traditional lifestyle threatened by rapid urbanisation. The EBRD is planning a technical cooperation (TC) project, with additional contribution from Gobi JSC, aimed at developing a sustainable cashmere supply. With this TC the suppliers and cashmere goat herders in remote areas will get educated and trained on how to increase the quality and sustainability of the fibre....
On May 24, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the 2017 Article IV Consultation with Mongolia.
Mongolia’s longer-term prospects are promising given its large natural resources. In recent years, however, the economy has faced substantial challenges, as external shocks and expansionary fiscal and monetary policies have compounded structural weaknesses. The new government that took office in 2016 has expressed a strong commitment to strengthen macro policies and implement structural reforms in order to stabilize the economy and lay the basis for sustainable, inclusive growth in the future.
Mongolia remains heavily exposed to external shocks, given its export profile, and a key challenge will be to avoid the boom-bust cycles of the past. The discussions thus focused on improving the fiscal framework and strengthening policy discipline, complemented by structural reforms to boost diversification and competitiveness and by efforts to strengthen and better target the social safety net.
Executive Board Assessment
Executive Directors noted that Mongolia had been hit hard by the fall in commodity prices and a slowdown in key export markets. Efforts to offset the impact of these external shocks through expansionary policies had proved unsustainable, leading to large fiscal deficits, high and rising debt and a fall in international reserves. Directors commended the new government for a strong commitment to restore stability and lay the foundations for sustained, rapid, and inclusive growth through sound macroeconomic policies and structural reforms, as reflected in its Economic Recovery Plan. Coordinated financial assistance from development partners, sizeable fiscal adjustment and continued engagement with private creditors will help restore debt sustainability as envisaged under the program to be supported by the IMF’s Extended Fund Facility Arrangement.
Directors stressed that fiscal consolidation and discipline are central to regaining durable debt sustainability. They supported plans to reduce non-essential expenditures, and increase tax revenues and pension contributions. Directors supported the commitment to implement the rules-based fiscal framework, including an end to quasi-fiscal operations of the Bank of Mongolia and the Development Bank of Mongolia, and the establishment of an independent fiscal council. They welcomed plans to strengthen public financial management and tax administration, and tighten the framework for public-private partnerships. Directors underlined the need to enhance the social safety net, strengthen the pension system, and improve program targeting to protect the most vulnerable sections of society.
Directors underscored that monetary policy should remain appropriately tight to contain inflationary pressures, even as there will be room to lower the policy rate from the current high level if inflation remains low and confidence is restored. The exchange rate should remain flexible and market-determined with intervention limited to addressing disorderly market conditions.
Directors stressed the need to strengthen the banking system through special audits and recapitalization of banks as well as upgrades to the regulatory and supervisory framework. Directors welcomed steps, including the new Bank of Mongolia law, to strengthen the independence and governance of the central bank. The renewed focus on implementing an effective anti-money laundering framework would help attract foreign investment.
Directors emphasized the need to promote inclusive growth through a focus on sustainable mining, economic diversification, and further regional integration. In addition, structural reforms should aim to improve the business climate, address supply-side bottlenecks, and deepen access to finance....
‘Innovation in maternal and newborn health services in Mongolia: from pilot to institutionalization’, the exit phase of the Telemedicine project is successfully launched.
Final stage of project on mother and child health launched. ‘Innovation in maternal and newborn health services in Mongolia: from pilot to institutionalization’, the exit phase of the Telemedicine project is successfully launched. With the project implementation, the sub-province centers were connected to the National Health Center for Mothers and Children via online network, enabling the patients in rural areas to receive medical advice and required information without coming to the city. The project also contributed to the reduction of maternal mortality, which decreased by 75 percent compared to that of 1990. Mongolia, thus, became one of the nine countries that have fulfilled their duties on reducing maternal mortality rates under the Millennium Development Goals, said Minister A.Tsogtsetseg during the signing ceremony of the project implementation agreement. The final stage will comprise works including conducting maternal and reproductive education training, capacity building for medical workers and making online network and mobile technology an inseparable part of our healthcare system. The project has been under realization since 2007 with the support of UN Population Fund and the Government of Luxembourg.
The first steps towards erecting turbines at the 50MW Tsetsii wind farm in Mongolia have been taken as the unfavorable weather conditions have cleared said Vestas, a Danish wind energy company.
Wind turbine is installed in Gobi Desert. The first steps towards erecting turbines at the 50MW Tsetsii wind farm in Mongolia have been taken as the unfavorable weather conditions have cleared said Vestas, a Danish wind energy company. The first tower section successfully installed at the project is located in the Gobi desert in Mongolia's south. In February, the Danish manufacturer said that high winds and extreme cold had halted general construction at the site. However, it continued transporting turbine components to the site while the poor weather conditions prevailed. Overall progress on the project remains ahead of schedule, Vestas said in its latest update.
Russia is ready to host the annual St. Petersburg International Economic Forum (SPIEF 2017) on Thursday. Among the issues to be discussed are problems in the global economy and Russia’s economic growth after the recession.
Russian President Vladimir Putin will meet the Indian Prime Minister Narendra Modi, Austrian Chancellor Christian Kern, and other world political and business leaders.
The SPIEF 2017 agenda includes the BRICS Business Forum and B20 (the G20 dialogue with the global economy) Forum on international trade and investment, a Russian–Indian Forum of Corporate Executives, the traditional Energy Summit of Corporate Executives, and business dialogues, including Russia–USA, Russia–France, Russia–Latin America, Russia–Switzerland, Russia–Japan, Russia–Africa, and others.
The heads of several European oil companies, including Total, Royal Dutch Shell, and BP will be attending.
Organizers say there is a significant interest in the event. Confirmations are up 15 percent from last year, St. Petersburg Governor Georgy Poltavchenko told RIA Novosti last week.
This year, a larger number of US businesses are also attending the Forum. Barack Obama’s administration discouraged US companies from participating last year, but under Donald Trump, the situation looks different.
"A large number of US business leaders are planning to attend the St. Petersburg Economic Forum this year… Now it is getting clear that there will be more US business leaders at the SPIEF, and the delegation will be more substantial, we are expecting those organizations which could not previously attend the forum for a number of reasons," Russia's trade representative in the United States Aleksandr Stadnik told Sputnik.
Though fewer CEOs are expected this year, organizers say that in business terms, it is even better.
“It may be better to have a key decision maker for emerging markets attend than a CEO. Everyone loves to see well-known, Davos-level participants attend the forum, but if you want to get practical stuff done, give me someone who focuses on business in Russia,” Dan Russell, head of the Washington-based US-Russia Business Council told Bloomberg.
The opening ceremony will see a speech from United Nations Secretary-General Antonio Guterres.
Ulaanbaatar /MONTSAME/ The initiative to observe the first day of June as an International Day of protecting children's rights first came up as one of the results of the 1925 Assembly of the League of Nations, held in Geneva. Mongolia joined the UN Convention on the Rights of the Child in 1990 as its fifth member. The International Children's Day is observed every year since June 1 of 1996 in Mongolia.
Children under age of 18 constituted 34.6 percent (one million 79 thousand 730 children) of the total population of Mongolia by the end of 2016, making it a very "young" nation. A total of 79,382 babies were born last year, according to the National Statistics Office.
Under six-year-old children make up for 28 percent of all children, and 77.6 percent of them go to kindergarten.
Mongolian parliament amended the law regarding prizes for mothers who gave birth to and raised many children in 2011. Since then, the number of mothers with the "Glory of Mother" Order grew 1.6 times within just one year. The order is awarded to mothers, who gave birth to four or more children.
As of 2016, there were over 210 thousand awardees of Glory of Mother Order. The number is forecast to grow in the coming years.
Likewise, the population is estimated to get younger year by year.
Parliament has recently passed a bill to amend the Mongolia Criminal Code. The Amendments will create new liabilities for adviser’s of corporate CEOs, whose actions result in offenses such as money laundering, terrorism, bribery, environmental abuse, actions that threaten the nation’s economic security, or the abuse of state property.
Under previous law, only the CEO his or herself could be held liable in such cases. The amendments will hold those around the CEO, who advised or pressured a certain course of action to also take responsibility.
These changes will apply not only to private corporations, but also to state owned enterprises. It is interesting to note that while the Criminal Code previously contained over 80 items imposing certain legal liabilities on legal entities such as companies, the amended Code now has less than 30.
This is in general expected to make it easier to establish and operate a new company in Mongolia. The intention of the law appears to be to make it easier for companies to do business by providing more free dome of operation, while at the same time increasing liability for offenses at the top levels.
ADB begins new Mongolia partnership with USD 250 million to avert crisis in social services and banking sector www.adb.org
ULAANBAATAR, MONGOLIA (31 May 2017) — The Asian Development Bank (ADB) Board of Directors has endorsed a new Country Partnership Strategy (CPS) for Mongolia, which envisages total assistance of $1.2 billion over the 2017-2020 period, and also approved two policy-based loans (PBLs) totaling $250 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.
The overarching goal of ADB’s assistance during the 2017-2020 period is to help Mongolia sustain inclusive growth during its current economic difficulties. To achieve this, it will focus on three main areas — economic and social stability, developing infrastructure for economic diversification, and strengthening environmental sustainability. Cutting across these pillars are efforts to improve public sector management and gender inequality in Mongolia. Annual lending from ADB will amount to about $300 million a year, with PBLs accounting for about half of this amount.
“The CPS builds on ADB’s role as Mongolia’s lead development partner and improved operational performance in recent years. The CPS is closely aligned with the government’s high-priority areas, and will focus on complex projects requiring significant technical expertise,” said Yolanda Fernandez Lommen, ADB Country Director in Mongolia. “ADB has also closely coordinated with the IMF and World Bank in formulating this CPS.”
Mongolia’s economic performance has slowed down from 17.3% gross domestic product growth in 2011 to 1% in 2016 in the face of falling foreign direct investment and commodity prices, among other challenges. As the economic growth has declined, the fiscal deficit has swollen to 15.4% of gross domestic product, resulting in cuts to some social welfare programs. This risks reversing gains in poverty reduction in recent years and throwing the 35% of the population that is near-poor back into poverty.
To mitigate the adverse impacts of the economic slowdown and fiscal consolidation, a PBL of $150 million will ensure fiscal expenditure is maintained on social welfare programs. Besides strengthening fiscal management, the PBL will help Mongolia consolidate the country’s 71 existing social welfare programs and achieve better targeting to ensure that the poor and vulnerable people are supported.
In restoring growth, the government faces another challenge in reviving the banking industry, which is seeing a rise in nonperforming loans that threatens the solvency of banks. The second PBL of $100 million will support the government’s efforts to restructure and recapitalize the banking industry, reduce nonperforming loans, and enhance regulation and supervision. Under this, government will implement a road map for banking industry rehabilitation and ensure effective management and sale of distressed assets.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing....
Ulaanbaatar /MONTSAME/ The construction of the largest flyover in Ulaanbaatar city launched today May 31, where a foundation stone laying ceremony of the construction was held. The project has 6 component parts. The main flyover between the Olympics Street and Ikh Mongol Uls Street, passing over Narnii zam (Sun road) and 406th railway crossing will be 470-meter long and 16.5-meter wide, with 4 lanes. Three sub-bridges will be constructed connecting the main flyover with Narnii Zam. The biggest sub-bridge and auto road to the south will be 637-meter long 7.5-meter wide with 2 lanes, while the other two will have a length of 170-meter and 270-meter and width of 7.5-meter and 8.5-meter with one lane each.
“- The new flyover will ensure traffic safety, avoiding meeting of railway crossing with auto road and will lower road load by improving passing capacity of roads. The flyover is planned to be constructed in 2017-2019” said Governor of the Capital S.Batbold.
The project’s total cost of USD42.38 million will be funded with a soft loan from the People’s Republic of China. Ambassador Xing Haiming said “During PM J.Erdenebat’s recent visit to China, the two countries have agreed to cooperate in ‘Belt and Road' program and this project is a part of the agreement. The flyover will be an actual work visible to people. The construction project relates to ‘Road and Belt' and ‘Road to Development’ project suggested by Mongolia. Therefore, a preferential loan is being granted by the Chinese Government and I pledge that we will complete the project with high quality within the duration indicated in the contract, involving leading construction company of our country” said the Ambassador.