Mongolia's Public and Private sector pledge to cooperate for prosperity www.ubinfo.mn

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.”

Mongolia to further loosen monetary policy to create jobs www.reuters.com

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.

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
MEDIA RELATIONS
PRESS OFFICER: TING YAN

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

Mongolia launches EU-funded project to promote trade www.xinhuanet.com

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.

Development Bank to resolve funding of incomplete apartment www.montsame.mn

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).

Asian governments to meet in Mongolia on disaster prevention www.reliefweb.int

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

Broaden Opportunities for Women Workers in Mongolia: New World Bank Report www.worldbank.org

Foreign workforce to be cut by 30 percent in 2018 www.gogo.mn

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.

Seoul requests Mongolia to allow more South Korean airlines www.news.mn

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.

USD 200 million wasted on Mongolian rail project? www.news.mn

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.