1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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IFC International Finance : Supported New Collateral Registry in Mongolia Delivers Strong Early Results for MSMEs www.4-traders.com

 Ulaanbaatar, Mongolia, June 5, 2017-Mongolia's web-based Pledge Notice Registry-supported by IFC, a member of the World Bank Group-was launched in March of 2017 and has already accounted for over 10,000 moveable-collateral registrations by micro, small, and medium-sized (MSMEs) borrowers. The registry is backed by the Ministry of Justice and Home Affairs under the Mongolian Secured Transactions Reform Project. The registry, which officially commenced operations along with the enabling Law on Tangible and Intangible Movable Property Pledge, provides filing and enquiry services for all types of movable-asset security interests and similar transactions, such as finance lease, credit sale, sale and buy-back.
This new web-based registration system represents a significant milestone under the Secured Transactions Reform Project. It enables creditors to search for existing interests on movable assets that they intend to use as collateral for a particular loan and to file security interest on their approved collaterals and establish priorities. It is an important foundation for the development of a movable-asset finance market in Mongolia. Typically, in developed markets, about 60 to 70 percent of business lending involves movable assets in various forms.
Over the past several years, the IFC team worked with the Ministry of Justice, the Bank of Mongolia, the Mongolia Bankers' Association, and other stakeholders to prepare the law and get it approved, develop the registry, and promote movable-asset finance to lenders. Of the more than 10,000 registrations to date, 38 percent is equipment, 25 percent livestock, 5.4 percent account receivables, and 1.7 percent vehicles. Women account for 23 percent of registrations.
'The Pledge-Notice Registry has strengthened the confidence of lenders. This supports the further improving of access to capital for MSMEs, including agricultural businesses, in Mongolia,' said Unenbat Jigjid, CEO of the Mongolian Bankers' Association. 'The use of movable assets as the basis for lending is a new deepening of our financial markets, which will benefit the economy and help generate more employment and income for the population.'
'We are very encouraged to see the strong and early results from the new registry,' said Tuyen D. Nguyen, IFC Resident Representative in Mongolia. 'Mobilizing moveable collateral to boost access to finance, especially for MSMEs, can play a significant role in Mongolia's sustainable economic recovery.'
Previously, IFC has helped develop modern secured financing systems in about 40 emerging markets including China, Cambodia, Vietnam, Sri Lanka, and Ghana. In China alone, around $3 trillion debt financing backed by movable assets is disbursed every per year, benefitting a large number of MSMEs and others.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org

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World Bank says trade, manufacturing to boost 2017 global growth www.reuters.com

The World Bank on Sunday maintained its forecast that global growth will improve to 2.7 percent this year, citing a pickup in manufacturing and trade, improved market confidence and a recovery in commodity prices.

The update of the multilateral development lender's Global Economic Prospects report marked the first time in several years that its June forecasts were not reduced from those published in January due to rising growth risks.

The World Bank's 2017 global growth forecast of 2.7 percent compares to its 2.4 percent estimate for 2016, a figure that was increased by a tenth of a percentage point since January.

The World Bank said advanced economies were showing signs of improvement, especially Japan and Europe, while the seven largest emerging markets - China, Brazil, Mexico, India, Indonesia, Turkey and Russia - were again helping to drive global growth.

"With a fragile but real recovery now under way, countries should seize this moment to undertake institutional and market reforms that can attract private investment to help sustain growth in the long term," World Bank President Jim Yong Kim said in a statement.

The bank boosted its 2017 growth forecast for Japan by 0.6 percentage point since January to 1.5 percent, while the euro zone's forecast was increased by 0.2 percentage point to 1.7 percent. In both cases, a pickup in exports and unconventional monetary easing are helping to support growth.

The World Bank said U.S. growth also is improving but it shaved 0.1 percentage point off its forecast for 2017 to 2.1 percent after weak growth early in the year caused by a pullback in consumer spending it viewed as temporary. It slightly lifted its 2018 U.S. growth forecast to 2.2 percent.

It left unchanged its forecast that China's growth would slow to 6.5 percent from 6.7 percent last year and predicted that commodity exporters Argentina, Brazil, Nigeria and Russia will see recessions end and positive growth resume this year.

But the World Bank warned that new trade restrictions could derail the recovery in trade that is benefiting many advanced and developing economies, citing actions being contemplated by the Trump administration.

Such restrictions could fall disproportionately on China and other Asian economies, the bank said.

"Significant disruption to China's exports would undermine its growth with large spillovers on the region," the bank said in the report. "Furthermore, trade-restricting measures in the United States could trigger retaliatory measures."

It said exports and investment in Mexico also could be negatively affected by the looming renegotiation of the North American Free Trade Agreement, causing spillovers to Central America as well.

(Reporting by David Lawder; Editing by Andrea Ricci)

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KPMG: China now a fintech force www.chinadaily.com.cn

If KPMG is set to launch a compilation of top 50 financial technology or fintech companies in China, it indicates the new business segment has truly arrived and is poised for rapid growth, said Zhou Jun, vice-chairman of its China unit.

The global audit, tax and advisory services major accords high regard to the fintech segment, which refers to online payment systems and other financial services offered digitally. KPMG will persuade Chinese companies to upgrade their systems so as to integrate fintech into their operations, he said.

"China is indeed taking the lead in global fintech," said Wang Lipeng, a partner at KPMG. "Fintech is bringing profound changes to the Chinese economy and industrial reforms."

He attributed China's lead in fintech to two key aspects: the fast-growing internet-related businesses; and the government's encouragement for innovation and entrepreneurship.

"Fintech benefits a lot from a culture of innovation and experts driving the development of internet-based businesses," Wang said.

According to a report by DBS Bank and EY, 40 percent of online consumers use electronic payment tools. China's investment on fintech last year was $8.8 billion, much higher than the previous year's level.

China is now home to four fintech unicorns-starups whose valuations have grown to $1 billion and above.

Ant Financial, from the Alibaba stable helmed by Jack Ma, leads the pack. It is followed by Luafx, a peer-to-peer lending platform powered by Ping An Insurance; Qufenqi, an online retailer that allows monthly installments; and JD Finance, a financial subsidiary of JD.com Inc, one of China's biggest online marketplaces.

Their rapid growth has lured traditional banks to fintech services. According to China Merchants Bank, it has earmarked 790 million yuan ($114 million) to encourage innovation in fintech projects.

In March, the bank agreed to grant 1 percent of its annual profit to fintech-related project innovation.

The bank also plans to intensify its efforts to adopt mobile technology, cloud computing, big data and blockchain technologies in its operations.

Industry observers, however, said fintech services should be adopted in a conscious way, not as a fad. Sringent risk management in enterprises holds the key, they said.

Chen Shengqiang, CEO of JD Finance, said in a recent message to the China Banking Regulatory Commssion that risk management is the very foundation of the fintech business.

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Presidential candidates to launch election campaigns tomorrow www.montsame.mn

Ulaanbaatar /MONTSAME/ June 6, Tuesday is the launch day of campaigns for the upcoming Presidential election.

Mongolians will choose their 5th President on June 26, Monday, and the standing candidates are Parliament Speaker M.Enkhbold, representing Mongolian People’s Party, former Member of Parliament Kh.Battulga, representing Democratic Party and former Member of Parliament S.Ganbaatar, representing Mongolian People’s Revolutionary Party.

The General Election Commission handed over certificates of candidacy on May 27, Saturday.
Kh.Aminaa

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PM discusses railroads, energy and environment cooperation with Russian Deputy Prime Minister www.montsame.mn

Ulaanbaatar /MONTSAME/ On the sidelines of his participation in the St. Petersburg International Economic Forum, Prime Minister J.Erdenebat held a meeting with Russian Deputy Prime Minister Arkady Dvorkovich to exchange views on various issues regarding Mongolia-Russia bilateral ties, including energy, environment, infrastructure and agricultural cooperation.

Two parties agreed on several matters within the framework of ensuring reliable operation of Mongolia’s energy system and reinforcing partnership in this connection, including building of thermal and hydro power plants to be built in Mongolia, technical renovations of power plants, training workforce, energy transmission expansion and increase of renewable energy consumption. In order to sustain reliable energy and implement economically beneficial projects in Mongolia, the sides agreed on assigning joint working group soon. This proves the two countries’ unified position on developing the energy infrastructure, which links the Russian Federation and the People’s Republic of China through Mongolia, in coordination with the international ”The Asia Super Grid” and Russian “Asian Energy Ring” initatives.

The sides agreed on starting the trilateral program “Economic Corridor” between Mongolia, Russia and China with railroad corridor. The Russian side shared their interest in connecting Kuragino-Kyzyl railway line with Mongolian north-side railroads. The project is expected to drastically increase Mongolian cargo turnovers through Tsagaantolgoi-Artssuuri-Ovoot-Erdenet route trans-border railways.

Within the framework of the meeting, cooperation of agricultural sector was an another important issue that the sides agreed on. Second program on improving the health of livestock is being implemented with the Government of Russian's humanitarian aid. Within the framework of the project, some 4.2 million dose of vaccinnes will be supplied as a non-refundable aid. Also, sides agreed on providing support by developing technologies, train specialists and broaden further cooperation in the sector.

Furthermore, they discussed forest reserves and safety of the two countries and decided to cooperate by implementing a project to control forest pests through biological methods with Russian technology and further cooperate on wildfire prevention.
B.Tugsbilig

 
 
 
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Goal set to maintain government debt within 60 percent of GDP www.montsame.mn

Ulaanbaatar /MONTSAME/ Report on the current state and perspective of the country’s economy, government budget and financial situation was uncovered during today’s parliament session. The information was presented by the Minister of Justice and Home Affairs S.Byambatsogt.

Mongolia saw economic growth of 11.6 percent in 2013, 7.9 percent in 2014, 2.4 percent in 2015 and 1.0 percent in 2016. The main factor of decreasing economic growth was the fall of minerals on the world market, as well as the economic declines in neighboring countries. Other causes can be named, such as the repugnant monetary policy and irresponsible and costly actions conducted by the previous government and the Bank of Mongolia, of which actions did not comply with the Government Budget Plan. The authorities, however, have been taking immediate measures including tightening monetary policy and amending some laws and regulations.

“Today, actions are being taken to slow down the economic decline. The International Monetary Fund has been collaborating in this effort. The government debt is intended to be limited within 88 percent of the country’s GDP in 2016, 85 percent in 2017, 80 percent in 2018, 75 percent in 2019, 70 percent in 2020 and 60 percent in 2021”, said the Minister. 
B.Amarsaikhan

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Cross-border cooperation to be further developed with Buryatia www.montsame.mn

Sankt Petersburg /MONTSAME/ Prime Minister J.Erdenebat, who is attending the St.Petersburg International Economic Forum in Saint Petersburg, received acting Head and Chairman of Government of Republic of Buryatia of Russia A.S.Tsydenov on June 1. During the meeting, the parties talked about development of cross-border cooperation, trade and investment relations of the two countries and influencing factors to them.

PM J.Erdenebat underlined ‘- Trade turnover between the two countries has increased since visa-free travel for Mongolian citizens to Russia took effect. When an intergovernmental agreement on supporting regional and cross-border cooperation is adopted, the widening relationship will develop further to higher level”.

They agreed to actively cooperate in exports of meat and meat products and supply of breeding animals. The parties also noted the necessity of powerful, reliable infrastructure to intensify newly-restoring multilateral cooperation between bordering regions. "The two countries are connected with railway and international roads and there are broad possibilities to improve the quality of this infrastructure and develop tourism businesses" highlighted the parties.
B.Ooluun

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Mongolia GDP per capita PPP Forecast 2016-2020 www.tradingeconomics.com

GDP per capita PPP in Mongolia is expected to be 11641.12 USD by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Mongolia GDP per capita PPP is projected to trend around 11722.71 USD in 2020, according to our econometric models.

 
 
 
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PM J.Erdenebat takes part in St.Petersburg International Ecomomic Forum www.montsame.mn

 
Ulaanbaatar /MONTSAME/ Prime Minister J.Erdenebat is taking part in the St.Petersburg International Economic Forum on 1-3 June in Sankt-Peterburg, Russia. At the opening meeting of the forum, UN General Secretary and Prime Ministers of Mongolia, Gabon and Serbia made speeches.
 
Mongolia's PM J.Erdenebat noted “- Since its inception by the initiative of President of the Russian Federation V.V.Putin, the St.Petersburg International economic forum has become a platform for exchanging views on pressing issues of international and regional economy, investment and businesses with participation of government heads of countries and business representatives. I consider, it is making contributions to lay a foundation for coordinating the future development of countries, cooperation and ensuring sustainable development of countries within the framework of cooperation. Russian has been a giant bridge connecting Europe and Asia historically, culturally and geographically and today’s forum is proof of it”.
 
“- Our development path has not been always smooth. Although we are faced with difficulties and challenges by failing and succeeding, every person and government of countries are keen to go forward optimistically with full of hope for the future ahead.
 
However, development path and possibilities given to world countries are not same. For example, Mongolia is a landlocked developing country and there are over 30 countries like our country. Small island countries also have troubles. I express my gratitude to the UN for understanding the situation of these countries with peculiar troubles and working for them by developing supportive policy. One way for going out of the difficulties, I think, is the relationship and cooperation between the regional countries. These issues were touched upon during the recent “Belt and Road” summit in China. Heads of Mongolia, Russia and China met and reached an agreement regarding the establishment of economic corridor connecting the three countries. It is a step to restore the ancient historical tradition of ‘Silk Road’, which had created a wide network connecting Asia and Europe by then-merchants and traders.
 
Furthermore, the goal to establish an economic corridor connecting the three countries by coordinating the initiatives of ‘Development path’ of Mongolia, ‘Belt and Road’ of China and Eurasian Economic Union progress will not be restricted within the three countries. Investment and active participation of world leading economies with cutting-edge technologies are greatly required for the infrastructure to be established in our country within this framework and I hope you will take it into your consideration.
 
Our country has many advantages, including having huge natural resources, enormous renewable energy reserves, vast fertile territory and skillful personnel as well as bordering with two countries with the world's biggest markets.
 
Today, we are enduring economic, budgetary and financial difficulties, however, with assistance from organizations of multilateral cooperation, including International Monetary Fund and other countries, we strive to achieve goals to balance macro economy, create growth and restore trust of foreign and domestic businessmen and investors.
 
I invite Russian investments, businesses and technologies. We have a wide cooperation opportunity in the development of a number of areas, such as infrastructure and agriculture. Particularly, I call upon to cooperate and invest in sectors vital to us, including railway and energy. Herder families of Mongolian steppe never lock their homes and they even have a tradition to leave the door open with prepared meal for unexpected guests during their absence. In accordance with this tradition, our door will be always open to you all” he said.
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Is coking coal pricing moving away from quarterly benchmarks? www.mining.com

Metallurgical coal miners could be exposed to more pricing volatility if a move afoot to do away with quarterly pricing comes to anything.

Coking coal, the kind used in steelmaking, is currently set at quarterly benchmarks between Australian mining companies and Japanese steelmakers.

But current negotiations between the two parties are pointing to a shift from benchmark pricing to a system that uses the monthly average of a daily spot price, Reuters quoted three sources close to the negotiations. The sources say it's Japanese steel mills that want a change.

"They want index-linked or fluctuating pricing," said a source at a mining company willing to be quoted. "They are tired of quarterly discussions and want more third-party assessments."

If that is true, coking coal pricing could be moving to a system more akin to the way iron ore, the other main ingredient in steelmaking, is priced. For the past eight years iron ore has been set on a daily basis, but prior to 2010, the bulk-shipped mineral was hammered out between buyers and sellers in one-year fixed contracts.

The more flexible pricing system would benefit coal miners when supplies are tight, which raises prices. Conversely, the same companies would be hit with lower prices when supply is plentiful and demand is weak. Of course, the latter situation would be a boon to steel mills.

According to Reuters BHP is siding with the Japanese steelmakers while "Other miners led by Glencore and Peabody are resisting the moves since they sell coal with a lower heat content that could be priced at a discount to a spot market price."

Australian premium coking coal was being sold as high as $304 a tonne earlier this year after Cyclone Debbie hit Queensland, the heart of Australian met-coal mining.

On Thursday a cargo of hard coking coal was being traded for around $156 a tonne according to MetalBulletin.

The steelmaking raw material is now trading more than $150 a tonne below its mid-April peak when the price of Australia free-on-board premium hard coking coal jumped to its highest since the second quarter of 2011.

That price spike was also the result of flooding in Queensland that saw quarterly contract prices negotiated at an all-time high of $330.

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