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Three-Pillared Development Policy presented at the Public and Private Discussions, the first stage of Mongolia Economic Forum, aims to improve living standards by reforming socio-economic policy and public governance, as well as by creating 263 thousand workplaces before 2020. In order to achieve this, the policy is prioritizing the development of agriculture, mining and tourism sectors. The main policy in the mining sector will be to create environment for distributing dividends to the public by activating major deposits into economic circulation. The three-pillared development policy is also addressing the expansion of trade and tourism by developing infrastructure. Prime Minister Khurelsukh Ukhnaa highlighted the importance of supplying 100 percent of food and electricity demand domestically, which are interlinked with the Coal miners' export price varies significantly MINING The third financing of the Extended Fund Facility (EFF) program implemented by the Government of Mongolia and International Monetary Fund (IMF) is expected to be settled at the meeting of Executive Board of IMF today. Accordingly, the board will conduct the performance review of EFF program, which has been implemented for over a year, to decide on the third financing. After the previous review SDR 55.9 million fund or USD 79.1 million was enabled by the IMF. The successful implementation of the program will allow for an amount equivalent to SDR 314.5 million, or about USD 434.3 million.
The IMF staff team conducted discussions on the third review of the three-year Extended Fund Facility in February and concluded that Mongolia’s economy is doing better than expected led by commodity exports and a pick-up in domestic demand. They also warned the growth outlook is subject to risks including a fall in external demand for commodities and higher fuel prices. Thus, the team noted it is essential that the authorities continue to build buffers and implement the structural reforms necessary for high and sustainable growth. In addition, the IMF expects Mongolia’s economy to grow by 5 percent this year and 6.3 percent in 2019. The overall fiscal deficit in 2017 was 1.9 percent of GDP compared to the target of 10.6 percent and 17 percent in 2016. IMF highlighted that fiscal results have been better than expected, supported by stronger revenues and tight expenditure control. The fiscal over-performance has provided some room for adapting program policies including a rise in civil service salaries in 2019 after several years of restraint, informed the IMF staff team in their statement after the visit. national security. The first phase of Mongolia Sustainable Development Vision 2030 is expected to be completed in 2020. By implementing the Three-Pillared Development Policy, the Government plans to increase annual GDP growth to six percent until 2020, GDP per capita to USD 4020 and create 263 thousand workplaces. Economist Khaschuluun Chuluundorj, addressed “Projects in agriculture, industry and infrastructure spheres are implemented with complete economic estimation, over 263 thousand workplaces can be created in the next three years.
If the investments are transferred as scheduled, poverty can be reduced by certain percentage.” Within the frames of the development policy, several major projects, such as Smoke-Free Ulaanbaatar, New Countryside, water recycling, waste treatment plants, oil refinery, infrastructure and power projects are expected to be implemented up until 2020. Presently, a total of 79 investment projects are in plans for the next three years. These will require a total of MNT 20 trillion financing, or annual financing of MNT 6 trillion. On the methods of financing, the Deputy Minister of Finance Bulgantuya Khurelbaatar informed “2018- 2020 Fiscal Framework Statement states to allocate a total of MNT 2.2 trillion from State Budget, foreign loans and aids. The remaining will be raised from public and private sector cooperation.” In order to formulate the Three- Pillared Development Policy, the Government reviewed and merged over 160 development documents, ergo focusing on reducing poverty, which has reached 26.4 percent. After pointing out the significance of cooperation between public and private sectors, the Chief of Cabinet Secretariat Zandanshatar Gombojav announced that no law and regulations will be ratified without negotiating with the private sector.”...
ULAANBAATAR, March 28 (Reuters) - Mongolia’s central bank will relax monetary policy to support an economic expansion programme aimed at creating jobs, officials said, a move that could signal an end to the austerity imposed after last year’s International Monetary Fund bailout.
After a three-year mining-led boom, landlocked Mongolia’s economy was hit in 2016 by a collapse in foreign investment and declines in the prices of major export commodities like coal and copper, leaving it struggling to pay off debts.
The country reached a $5.5 billion bailout agreement with the International Monetary Fund (IMF) last year in order to relieve debt pressures and stabilise its tugrik currency.
As part of the deal, Mongolia agreed to impose more discipline on its banking system, raise taxes and bring government spending under control.
But government officials speaking at a forum in Ulaanbaatar on Wednesday said the country would now embark on a 900-day expansionary programme aimed at stimulating the private sector and creating as many as 263,000 jobs.
Bayartsaikhan Nadmid, president of the Bank of Mongolia, told the forum that the bank aimed to create a more favourable environment for businesses this year.
IMF Executive Board Completes Third Review under the Extended Arrangement for Mongolia and Approves US$ 30.55 Million Disbursement www.imf.org
On March 28, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF). Completion of the review enables Mongolia to draw the equivalent of SDR 20.9598 million (about US$ 30.55 million), bringing total disbursements under the arrangement to SDR 104.8278 million (about US$ 152.79 million).
Mongolia’s performance under the program thus far has been strong. The economy is recovering better than expected, with real GDP growth of 5.1 percent in 2017 and a significant improvement in the fiscal balance of 15 percentage points of GDP. The combination of strong policy implementation and a supportive external environment has helped the authorities over-perform on all end-December 2017 quantitative targets. However, the performance on structural reforms has been mixed with some delays on structural benchmarks under the program and reversals of three fiscal measures considered during previous reviews.
Mongolia’s three-year extended arrangement was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$434.3 million at the time of approval of the arrangement (see Press Release No. 17/193 ). The government’s Economic Recovery Program, supported by the IMF, aims to stabilize the economy, reduce the fiscal deficit and debt, rebuild foreign exchange reserves, introduce measures to mitigate the boom-bust cycle and promote sustainable and inclusive growth.
Following the Executive Board’s discussion of the review, Mr. Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director, said:
“Mongolia’s performance under the Fund-supported program has been favorable. The economy is recovering better than anticipated due to good program implementation, buoyant external demand, and a return of confidence. The fiscal deficit fell sharply due to a substantial pick up in revenues and strict expenditure control, yielding a notable improvement in the public debt outlook. External financing costs continue to fall, with external bonds maturing in 2018 rolled over at lower interest rates, and foreign exchange reserves have recovered further.
“All end-December 2017 quantitative targets under the program have been met. Fiscal and banking sector reforms are proceeding, albeit with some deviations and delays. Fiscal results have been significantly better than expected, with a major reduction in the deficit, supported by expenditure restraint and a strong recovery in mining-related revenues. Official reserves have more than doubled over 2017, reflecting a jump in coal exports, capital inflows, and disbursements under the external financing package from donors and the IMF.
“The authorities are moving ahead with ambitious structural reforms designed to sustain growth over the medium term, promote competitiveness and diversification, and mitigate the boom-bust cycle. In the financial sector, the rehabilitation and strengthening of the banking system is underway, building on the recently completed comprehensive Asset Quality Review and several new laws passed by Parliament. Sustaining the reform momentum in this area will be critical. On the fiscal side, the authorities remain committed to the strengthened path of adjustment, with continuing restraint on spending paired with efforts to sustain the recent strong revenue performance. To this end, building on technical assistance from the IMF, they are particularly focused on improving the quality of tax administration.
“With debt still high and the economy exposed to global commodity developments, it is critical that the authorities maintain their strong commitment to the program. Firm program implementation is needed to sustain the virtuous cycle of recovering growth, improving confidence, rising reserves, falling debt, and strong support from the donor community.”
IMF Communications Department
PRESS OFFICER: TING YAN
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG...
ULAN BATOR, March 28 (Xinhua) -- The inauguration ceremony of a project with a funding of 4.8 million euros (5.95 million U.S. dollars) from the European Union (EU) to promote Mongolia's trade was held here Wednesday.
The project aims to support the country's economic growth by increasing the exports of non-mining sectors, according to the Mongolian Ministry of Foreign Affairs.
"Under this project, the Mongolian government will support entrepreneurs by building a sound business environment and facilitating trade and exports," D. Davaasuren, state secretary of the Mongolian Ministry of Foreign Affairs said at the ceremony.
Mongolia's main trade partners are China, accounting for 70 percent of its total trade volume, Russia, representing over 10 percent, and the EU, taking up 11 percent, said Davaasuren.
"Our country is capable of exporting 7,200 types of goods on favorable terms to the EU members, but till now its potential has not been fully tapped. We hope the project will help solve this issue," he said.
He said the products exported from Mongolia to the European countries are at present limited to only a few types of wool, cashmere and handicrafts and that therefore Mongolia is aiming to diversify its exports. Enditem
Ulaanbaatar/MONTSAME/ During the regular Cabinet Meeting on March 27, a decision was made to transfer unfinished apartment buildings for a total of 1562 households, which were registered at the State Housing Corporation of Mongolia, into the authorization of Development Bank of Mongolia (DBM).
The Board of Directors of DBM was assigned to resolve the required financing to complete constructions of the apartments this year.
After completing constructions of the apartments, an issue on transferring the apartments into Rental Housing Fund will be reconsidered.
BANGKOK/GENEVA, 27 March, 2018 - Governments from the world’s most disaster-prone region will meet in Mongolia in July to discuss acceleration of efforts vital for the sustainable future of the region including how to prevent disasters and tackle climate change while reviewing progress in reducing disaster losses.
The Government of Mongolia and the UN Office for Disaster Risk Reduction (UNISDR) will host the 2018 Asian Ministerial Conference on Disaster Risk Reduction July 3-6 in Ulaanbaatar City under the theme “Preventing Disaster Risk: Protecting Sustainable Development.”
It is estimated that the region lost US$ 1.3 trillion in assets between 1970 and 2016 as a result of disasters. In 2017, 6,543 people lost their lives in over 200 major disasters affecting 66.7 million people.
Disaster risk across the region is exacerbated by high levels of poverty, climate change, rapid urbanisation and exposure to the entire spectrum of natural hazards including drought, floods, cyclones, earthquakes and heatwaves.
The Prime Minister of Mongolia, Mr. Khurelsukh Ukhnaa, said: “It is three years since UN Member States adopted the Sendai Framework for Disaster Risk Reduction, the global plan to reduce disaster losses. In Asia we have a regional plan for implementation and this Conference will be an opportunity for governments and partners to review progress in areas such as reducing the numbers of people affected by disasters and reining in economic losses.”
Mr. Khurelsukh who was designated a UNISDR Champion at the Global Platform for Disaster Risk Reduction in 2017, added: “The Conference will also be a major boost to regional and cross-border cooperation on reducing disaster risk and taking action on climate change. Progress in Asia is vital to success in achieving the Sustainable Development Goals and the overall 2030 Agenda for Sustainable Development.”
The UN Special Representative for Disaster Risk Reduction, Ms. Mami Mizutori, said: “The Asian Ministerial Conference will develop an action plan for the next two years. This will include a renewed focus on Target (e) of the Sendai Framework that aims for a substantial increase in the number of countries with national and local disaster risk reduction strategies by 2020. Asia’s lead in this important area is vital as we step up efforts to monitor progress on achieving the targets on reducing disaster losses in the Sendai Framework.”
Ms Loretta Hieber Girardet, Chief of UNISDR’s Regional Office for Asia and the Pacific, said: “The worst disasters that could happen have not happened yet. Reducing the risk of their occurrence is more important in Asia given the high levels of exposure to disaster risk. The Asian Ministerial Conference comes at an opportune time with the launch in March of the Sendai Framework Monitor. This is the online tool hosted by UNISDR which allows countries to report their progress on reducing disaster losses against the Sendai Framework targets.”
Over 3,000 delegates are expected to participate in the event, where the governments will adopt the ‘Ulaanbaatar Declaration’ and the stakeholder groups will issue voluntary commitments.
A key feature of the conference will be an Asia Video Contest on Disaster Risk Reduction that will showcase success stories in building resilience at national, local and community levels. Launching the Contest in Ulaanbaatar City on 24 January 2018, Mr. Enkhtuvshin Ulziisaikhan, Deputy Prime Minister of Mongolia and chairperson of the 2018 Asian Ministerial Conference on Disaster Risk Reduction, called on the international community to share learning and innovation through good practices and lessons learned in disaster risk management to mutually support the implementation of the Sendai Framework.
The conference will be supported by several partner organisations and will feature a ministerial segment, technical and thematic sessions, featured events and public forum.
For more information, see: http://www.unisdr.org/amcdrr2018...
The Ministry of Labor and Social Welfare and the General Authority on Labor and Social Welfare organized a meeting with over 80 entities that have a foreign workforce.
State authorities granted
38,553 preliminary work permits to foreign workers in 2015,
27,526 in 2016, and
19,715 in 2017.
It is estimated that there were 4,703 foreign experts and workers in Mongolia at the end of 2017.
Minister of Labor and Social Welfare S. Chinzorig stated, “The number of foreign workers would be reduced by up to 30 percent in 2018, and by 25 percent in 2019.” Income from employment fees for foreign employees is deposited to the state's Employment Support Fund, and used to strengthen the domestic labor market, increase the number of employment opportunities, and to organize vocational trainings.
On Monday, South Korea and Mongolia discussed ways to step up cooperation in a range of sectors, including the economy, development and exchange between the peoples of the two countries, the foreign ministry in Ulaanbaatar said.
The third South Korea-Mongolia joint committee meeting was held in the Mongolian capital, on the 28th anniversary of the establishment of diplomatic relations between the two countries.
South Korea's Deputy Foreign Minister Cho Hyun and Minister of Environment and Tourism N.Tserenbat led the discussions.
As part of efforts to enhance bilateral cooperation, South Korea requested that Mongolia allow more South Korean airlines to join the Korea-Mongolia air route, which is currently limited to only one Korean air carrier. Mongolia responded that a legal revision is under way to address the issue, the ministry said.
The Mongolian side called for an increase in scholarships for its students who are studying in South Korea and for the expansion of Korean visa issuance for its nationals.
The two sides also agreed to work together in fighting air pollution, with Seoul pledging to review measures to help reduce microdust in Mongolia.
Minister Cho also paid a courtesy visit to Prime Minister U. Khurelsukh and ensured that the two countries will work together to further increase exchanges between their peoples.
It has emerged that the Mongolian Government spent a total of 200 USD million on a new railway project which cancelled in 2016. J.Bat-Erdene, Minister of Road and Transport Development has been drawing attention to the railway that was never built.
In 2012 he was responsible for leading the working group for implementing the project. The agreement for constructing railway connecting Mongolia's strategically important Tavan Tolgoi, which contains an estimated 6.4 billion tonnes of coking coal and the Gashuun Sukhait border crossing with China, was signed by Energy Resources LLC. The rail project was seen as essential for speeding up coal transport and was expected to have been completed by 2016. However, the company’s investment to the project was stopped by the Mongolian Government at the time.
It will be recalled that last autumn gigantic queues of coal trucks taking Tavan Tolgoi coal to China formed on the road to the Gashuun Sukhait border crossing. At times the queues exceeded 100 km! Clearly, an alternative mode of delivery has to be found.
Currently, there are two options for the implementing the rail project: either the coal transportation companies unite to cover the costs or China, which buys the Tavan Tolgoi coal invests.