Mongolia's Children Choke In Toxic Pollution www.afp.com

As she watched her five-month-old son lying in intensive care, wires and tubes crisscrossing his tiny body, Uyanga cursed her hometown Ulaanbaatar and its chronic pollution.
The toxic smog that settles over the Mongolian capital every winter has been a suffocating problem for more than a decade that successive governments have failed to dispel.
There are wisps of hope in a resurgent grassroots movement and a promised official push to action.
But the statistics are grim.
Respiratory illness cases have risen steadily, with pneumonia the second leading cause of death for children under five.
Uyanga's son was admitted to hospital with pneumonia, then developed a secondary infection in a ward crowded with children suffering the effects of some of the world's worst air.
"I was so scared when he was admitted to intensive care," said Uyanga, who, like many Mongolians, goes by one name.
"I love my city and I want to continue to live here. But considering the health of my children, on that night, I cursed being born in Ulaanbaatar."
In the depths of winter, the city's daily average of PM 2.5 -- small particulate that can enter the lungs and bloodstream -- can be 27 times higher than the level considered safe by the World Health Organization.
Young children are particularly vulnerable, breathing faster than adults and taking in more air relative to their size.
All three of Uyanga's children were hospitalised with respiratory illnesses before they were a year old, with her youngest admitted two winters in a row.
Most of her friends have had similar experiences.
It "has become part of our daily lives, or like social norms", she said.
Located in a basin surrounded by mountains, Ulaanbaatar traps smoke and fumes from both coal-guzzling power stations and homes.
A dense blanket of smog coils snugly around city-centre apartments and Mongolia's traditional round ger tents in its outer districts most winter mornings.
Ger dwellings have sprawled as hundreds of thousands of nomads decamp to the capital in search of steadier incomes and better public services.
Most use individual coal burners to stay warm in the winter, when temperatures can plunge to minus 40 degrees Celsius (minus 40 Fahrenheit).
One freezing morning, distributors loaded up coal briquettes onto a pick-up truck whizzing around ger households.
"I don't think there's anyone in Mongolia who's not concerned about air pollution," said 67-year-old coal seller Bayarkhuu Bold.
Cashier Oyunbileg said she burns a 25-kilogramme (55-pound) bag of briquettes every two days.
Inside her ornate, cosy ger, she confessed she was "really worried" about her three children's health, and had even set up her tent on higher ground hoping to avoid air pollution.
"This year, though, it's been really disastrous," she said.
Her family attempted to switch to an electric heater but "just couldn't afford the bill".
Respiratory disease rates among children are increasing in such districts, school doctor Yanjmaa said.
"It is impossible for people who are breathing this air to have healthy lungs," she said.
Oyunbileg's options are limited.
"I usually don't let my children go outside a lot," she said. "If I let them, I usually put masks on them."
Wealthier compatriots now often choose to spend the winter outside Mongolia.
Uyanga and her husband spent their entire savings renting somewhere with better air quality for three months when their first child was born.
"It's helpless," she said. "No matter how hard we try to keep the indoor air quality better... our children (have to) go outside all the time."
In 2019, the government replaced raw coal with refined coal briquettes, offering some brief air quality benefits, said state meteorologist Barkhasragchaa Baldorj.
The benefits have plateaued as coal burning increases in a country where the industry is vital to the economy.
The briquettes have also been linked to carbon monoxide poisoning and increased levels of some pollutants.
Barkhasragchaa is one of only two people assigned to Ulaanbaatar's air quality monitoring stations.
"If you heard the actual budget allocated for maintenance, you would laugh... it's just impossible to maintain a constant operation," he said.
Many were sceptical about government efforts.
"Personally, I don't see any results," coal seller Bayarkhuu said.
The city's deputy governor responsible for air pollution, Amartuvshin Amgalanbayar, promised change.
This year, 20,000 households will switch to gas, resulting in a 15 percent reduction in pollution, he said.
Plans to move another 20,000 households from ger districts into apartments will begin in 2025, as well as efforts to solve another of the capital's intractable and related problems -- traffic.
A long-delayed metro, that has become a symbol of official inefficacy, will be built by 2028, he said.
"The issues we were talking about trying to solve 20 years ago, when I was a student, are still here," said the 40-year-old. "It's been given to the next generation to solve."
That exasperation coalesced last year when tens of thousands signed a petition demanding a public hearing on pollution policies.
"It was my mum (getting sick) that really spurred, I think, first anger and disappointment and a sense of helplessness," one of the organisers, 23-year-old Enkhuun Byambadorj, told AFP.
Attempts to solve the problem so far "have looked at only one sector, or have looked at the problem from only one perspective", she said, with the petition calling for a more "holistic, cross-sector" approach.
The hearing took place last month, with Enkhuun and her colleagues hopeful that it shows political will to tackle the problem by younger and more professional lawmakers.
"We've scratched an itch and revitalised a grassroots movement," she said.
"What we need to do is keep pushing decision-makers to build on what they've done... and to turn the recommendations that come out of the hearing into decisions that can be implemented."

Fitch Assigns Mongolia's Golomt Bank First-Time 'B+' Rating; Outlook Stable www.fitchratings.com

Fitch Ratings - Seoul/Hong Kong - 11 Mar 2025: Fitch Ratings has assigned Golomt Bank JSC a Long-Term Issuer Default Rating (IDR) of 'B+'. The Outlook on the IDR is Stable. At the same time, the agency has also assigned Golomt a Viability Rating (VR) of 'b' and Government Support Rating (GSR) of 'b+'.
Key Rating Drivers
Sovereign Support Drives IDR: Golomt's Long-Term IDR is driven by its GSR, which is in line with Mongolia's sovereign rating (B+/Stable). We believe the Mongolian authorities have a higher propensity to support a large domestic systemically important bank (D-SIB) such as Golomt, which has a 20% share of system deposits, than smaller D-SIBs, although this is counterbalanced by the country's ability to provide timely support. Mongolia's re-capitalisation law provides grounds for sovereign support as well as for a bail-in, should any D-SIB require it.
The VR is underpinned by Golomt's solid domestic banking franchise. It also reflects the bank's larger risk appetite relative to higher-rated domestic peers. Golomt's loan growth rate has exceeded the Mongolian banking system average, weighing on its capitalisation and deposit funding. However, its financial performance has improved significantly in recent years as it continues to resolve legacy asset-quality issues.
Favourable Operating Environment: Fitch anticipates favourable business prospects for the banking sector, driven by Mongolia's steady medium-term economic trajectory. We believe robust mining activities and the increasing stability of the government's policy execution are supportive of growth. We also expect the authorities to remain committed to upholding the sector's stability, including adoption of international prudential standards such as the Basel framework, to strengthen banks' capital management.
Significant Domestic Franchise: Golomt's business profile score of 'b' captures its significant franchise in Mongolia. The bank's operating income has increased significantly in recent years as it emerged from a successful turnaround effort following asset-quality troubles during 2018-2020 with high credit impairments. However, Golomt's absolute size remains small among international 'b' category peers.
Large Growth Appetite: Golomt has reduced its sectoral concentration substantially by diversifying into SME and retail loans, with the share of corporate loans to total loans declining by 17pp over the past six years. Nonetheless, we assess that Golomt has larger loan growth appetite and higher concentration risks than its close local peers. Its loan portfolio grew by 53% in 2024, compared with the system average of 35%.
Improved Loan Quality: The bank's asset quality has improved substantially over the past several years through repeated asset-quality reviews and increasing diversification. Fitch estimates that the stage 3 loan ratio improved to about 5% in 2024, from about 12% in 2021. However, we note that strong loan growth in recent years contributed to the improved ratio and the provision coverage for stage 3 loans remains low compared with those of local peers.
Improved Profitability: Golomt's earnings and profitability have continued to improve as credit costs declined considerably. Fitch's core metric, the four-year average of the operating profit/risk-weighted-asset ratio, improved to 4% in 2024 from below 1% in 2021. We forecast Golomt's risk-adjusted profitability to moderate in the near future, as we do not expect the contribution from foreign-currency swaps in 2024 to be sustained. The net interest margin is also likely to decline due to intense competition and lower policy rates.
Growth Pressures Capitalisation: Golomt's capital ratios have been declining since 2022 due to its renewed focus on balance-sheet growth. We estimate its Fitch Core Capital ratio will have declined to about 16% by end-2024, from 17.6% at end-2022, and we forecast a further drop in the near term due to its large growth appetite. This is in spite of the bank's improved internal capital generation capacity. Golomt's capital ratio is also noticeably lower than those of its local peers.
Franchise Supports Funding and Liquidity: The ratio of loans to customer deposits increased significantly in 2024 due to substantially faster loan growth. However, we assess that Golomt's significant deposit franchise is able to support and fund the expansion of its loan book, provided that growth moderates from the 2024 level. The bank's overall funding structure, including its higher concentration of large depositors, appears to be weaker than those of higher-rated local peers.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Any negative rating action on the sovereign rating would prompt similar action on Golomt's GSR and IDR.
Golomt's VR could also be downgraded if its business profile were to be compromised by a structural weakening of its franchise and larger risk appetite, and if a weaker economic environment leads to deterioration in a combination of the following metrics:
- impaired loans/gross loans increasing above 8% for a sustained period (end-1H24: 5.5%);
- operating profit/risk-weighted assets falling below 2% for a sustained period (1H24: annualised 9.3%); and
- the Fitch Core Capital ratio falling below 14% without a credible path to return the ratio above this level (end-1H24: 16.1%).
The GSR could be downgraded if we assess that the sovereign's ability to provide support has weakened, which could be indicated by a sovereign downgrade. A GSR downgrade could also be driven by our view that the state's propensity to provide support has diminished, which could result from a significant decline in the bank's systemic importance and deposit market share, although this is not our base case.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
A positive rating action on the sovereign rating would prompt similar action on Golomt's GSR and IDR.
Golomt's VR is sensitive to developments in Mongolia's operating environment. A sovereign rating upgrade, combined with steady progress towards a stronger legal and regulatory framework, could potentially lead to a higher operating environment score. This, in tandem with sustained improvements in Golomt's risk appetite and financial profile, could result in an upgrade of the VR.
The GSR is equalised with the sovereign rating. It can be upgraded only if the sovereign rating is upgraded and if we believe that the propensity of sovereign support has not diminished.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
The Long-Term IDR (xgs) of 'B(xgs)' is driven by the VR. The Short-Term IDR (xgs) of 'B(xgs)' is mapped from the Long-Term IDR (xgs) in accordance with Fitch's Bank Rating Criteria.
Golomt's long-term senior debt instruments are rated in line with its Long-Term IDR and Long-Term IDR (xgs), as they represent its unsecured and unsubordinated obligations. The Recovery Rating of these notes is 'RR4', reflecting average recovery prospects in a default.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
A change in the VR would prompt a similar change to the Long-Term IDR (xgs). The Short-Term IDR (xgs) could be downgraded if the VR is downgraded to the 'ccc' category or below. The Short-Term IDR (xgs) could be upgraded if the VR is upgraded to 'bbb-' or above, which is a remote prospect.
A change in the Long-Term IDR or Long-Term IDR (xgs) would lead to similar action on the ratings of the bank's long-term senior debt instruments. The senior debt rating would also be sensitive to our assessment of recovery prospects.
Date of Relevant Committee
27-Feb-2025
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
Golomt's Long-Term IDR is linked to Mongolia's sovereign rating, based on our assumption of state support.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products....

“Chinggis Khaan” international exhibition opens at Czech National Museum www.gogo.mn

Minimum wage to increase to MNT 792,000 from April 1 www.gogo.mn

The Tripartite National Committee on Labor and Social Partnership decided on October 7, 2024, to raise Mongolia’s minimum wage by 20%. Effective April 1, 2025, the minimum hourly wage will be set at MNT 4,715, and the monthly minimum wage will increase from MNT 660,000 to MNT 792,000.
The decision was made based on multiple economic and social factors, including:
The minimum standard of living
Labor productivity in relation to the average wage
The minimum pension provided by the Social Insurance Fund
Economic growth and employment rates
Inflation trends
A working group under the committee assessed these factors and determined that a 20% increase was appropriate.

Mongolia's forex reserves drop to 4.7 bln USD www.xinhuanet.com

Mongolia's foreign exchange reserves dropped to 4.7 billion U.S. dollars as of the end of February, local media reported on Tuesday, citing data from the country's central bank.
The figure decreased by 2.47 percent compared to the previous month and by 13.55 percent since the beginning of this year, the Bank of Mongolia said in a statement.
Experts said the recent decrease in forex reserves can be attributed to various factors, including an increase in imports, such as car purchases by citizens and an outbound tourism.
A significant decline in Mongolia's exports since the beginning of the year also led to a reduction in the inflow of foreign currency.
The central bank expects to increase the country's foreign exchange reserves to 6.5 billion dollars in the medium term and up to 10 billion dollars in the long term.
According to the regulator, Mongolia's foreign exchange reserves stood at 5.5 billion dollars by the end of December 2024.

Mongolia and the Czech Republic Embark Upon a Comprehensive Partnership www.montsame.mn

At the invitation of President of the Czech Republic Petr Pavel, President of Mongolia Khurelsukh Ukhnaa is paying a State Visit to the Czech Republic on March 9-12, 2025.
President of Mongolia Khurelsukh Ukhnaa and President of the Czech Republic Petr Pavel attended the Signing Ceremony of Cooperation Documents.
Minister of Foreign Affairs of Mongolia Battsetseg Batmunkh and Minister of Foreign Affairs of the Czech Republic Jan Lipavský signed a Joint Declaration on Establishing a Comprehensive Partnership between Mongolia and the Czech Republic. Mongolia established diplomatic relations with Czechoslovakia on April 25, 1950, and with the Czech Republic on January 1, 1993. The Czech Republic is one of Mongolia’s "third neighbors," and the two countries have maintained friendly relations and cooperation.
Minister of Justice and Internal Affairs of Mongolia Altangerel Oyunsaikhan and Deputy Minister of the Interior of the Czech Republic Lukáš Hendrych signed an Intergovernmental Agreement on Police Cooperation between the Government of Mongolia and the Government of the Czech Republic.
The two countries will cooperate in exchanging experiences on criminological research and investigative methods, organize joint training sessions, seminars, practical exercises, language courses, and specialist training programs. The Agreement facilitates direct and efficient cooperation between the authorized institutions of the two countries in preventing and detecting organized crime, identifying criminals, and ensuring public safety and order.
Minister of Education of Mongolia Naranbayar Purevsuren and Deputy Minister of Education, Youth, and Sports of the Czech Republic Jaroslav Miller signed an Intergovernmental Agreement on Cooperation in Education between the Government of Mongolia and the Government of the Czech Republic.
The two countries will cooperate in providing short-term training for students, teachers, and researchers, as well as in organizing annual joint summer language and literature programs aimed at deepening mutual knowledge of languages and cultures. The Agreement provides increased opportunities for students who qualify under the "President’s Scholar – 2100" Scholarship Program to study in Czech public universities.
Minister of Agriculture and Light Industry of Mongolia Enkhbayar Jadamba and Minister of Agriculture of the Czech Republic Marek Výborný signed a Memorandum of Understanding on Cooperation in Agriculture between the Ministry of Food, Agriculture, and Light Industry of Mongolia and the Ministry of Agriculture of the Czech Republic. 
Under the memorandum, the two sides will cooperate in expanding economic cooperation of the two countries, ensuring food safety and security, exchanging advanced agricultural technologies, machinery, equipment, and jointly working on the production of raw materials and products of animal origin and will explore the opportunities to introduce traditional pastoral livestock raw materials and products into the European market.
Ambassador Extraordinary and Plenipotentiary of Mongolia to the Czech Republic Gansukh Damdin and Director of the Prague Zoo Miroslav Bobek signed a Memorandum of Understanding between the Ministry of Environment and Climate Change of Mongolia and the Prague Zoo of the Czech Republic.
This Memorandum of Understanding (MOU) initiates cooperation between Mongolia and the Czech Republic in protecting the critically endangered wild Bactrian camel and preserving its ecosystem. The Czech Republic has experience in successfully implementing the Przewalski’s Horse Reintroduction Project in Mongolia. Under the MOU, the two sides will expand the conservation efforts of the wild Bactrian camel by involving international researchers and scientists, ensuring sustainable population, conducting in-depth studies on its ecology, and developing and improving detailed conservation plans.

Preliminary findings on the impact of nano oxygen water on the growth of Siberian fir seedlings (Abies sibirica Ldb) and some soil parameters (Study report) www.billiontree.mn

Abstract: In statistics, Siberian fir constitutes merely 0.02% of Mongolia's total forest resources. Illegal logging and human activities have led to a decline in fir forest resources and their distribution in recent years. Nevertheless, scientific studies focusing on the cultivation of Siberian fir are comparatively rare compared to other coniferous species. This study aimed to examine the effects of oxygen-rich nanobubble water irrigation on the seed propagation of Siberian fir and the feasibility of using this technology in Mongolia.
The use of oxygen nanobubble water enhances the height growth rate of Siberian fir seedlings by up to 20%. Therefore, the parameters of soil humus content, electrical conductivity, and pH exhibited positive results during the short-term experimental research of the growing season. Research must be continued throughout the growing season in tree nurseries using conifer plantations. 
With the support of the Canadian Embassy and GAIA Water LLC, this research study was funded by the BILLION TREE FUND (https://billiontree.mn/) of Mongolia. 
D. Bazar1*, D. Handsuren,  M.Khishigjargal, A. Buyanbaatar 
*bazar@muls.edu.mn 
Please see the full study document at https://billiontree.mn/content/detail/48

Construction of Ulaanbaatar Cable Car Project Begins www.montsame.mn

As part of the comprehensive project aimed at reducing traffic congestion in Ulaanbaatar City, the construction and installation work for the aerial cable car transport system commenced on March 10, 2025. 
The feasibility study for the second line of the Project, connecting Yaarmag and Artsat Valley to Unur Residence Complex, has been approved. Anchor components for two stations and 19 supporting pillars have been received, with the remaining equipment for the two stations and the T1 and T8 support pillars scheduled for delivery in April 2025. The production of the cable car cabins is also set to begin that same month. 
Once operational, the cable car system on the Yaarmag-Artsat-Unur Residence Complex route will have the capacity to transport 2,320 passengers per hour during peak times, utilizing a total of 98 cabins, each accommodating up to 10 passengers. The route will cover the distance in approximately 11 minutes, traveling at a speed of 22 km/h. After installation, the system will undergo a six-month trial run without passengers. 
The Yaarmag-Kharkhorin cable car line will stretch 4.2 km, including two stations and 19 support pillars, with heights ranging from 7.5 to 42 meters. 
The Project’s Chief Engineer G. Tuvshinsanaa stated, “Today marks the start of installing the support pillars for the aerial cable car system. Of the 19 pillars, six will be placed in the Tuul River basin, ensuring completion ahead of spring floods and snowmelt. Once the support pillars are in place, we will move on to assembling the metal framework. The construction is expected to be completed by December this year, followed by a three-month period for testing and adjustments. The system is planned to be fully operational by the second quarter of next year.”
The Construction Manager at “Monnis Engineering” LLC J. Ankhbayar noted, “The construction will include reinforced concrete pile foundations and column foundations. All support structures, manufactured in France, are expected to arrive by May. Drilling will reach depths of 15 to 20 meters, with concrete foundations extending six to nine meters. Additionally, two-storied buildings will be constructed at both stations to house the cabins. In terms of safety, we are collaborating with Ulaanbaatar’s Rescue Unit and experts from France to exchange knowledge and ensure best practices.”

Switching to gas or electric heaters save households up to MNT 100,000 bills www.gogo.mn

Heating price to increase from May 16 and water prices to increase from September 16 www.gogo.mn

The Energy Regulatory Commission has announced upcoming increases in heating and water prices, which are expected to impact inflation.
According to B.Lkhagvasuren, the Governor of the Bank of Mongolia, heating prices will rise by 85% starting May 16, 2025, following a decision made last November. Additionally, hot and cold water prices will increase from September 16, 2025. 
Currently, the heating tariff stands at MNT 33,862 per unit, while the actual cost is MNT 62,960, causing financial losses for utility providers. Household electricity and heating tariffs have remained unchanged since 2019. The Energy Regulatory Commission stated that the price adjustments aim to align with market principles and enhance the energy sector's financial sustainability.
Water prices per 1 cubic meter:
Clean water: MNT 1,340
Hot water: MNT 1,632
Wastewater: MNT 1,070
Base water price: MNT 3,000
These adjustments are expected to contribute to inflation, which currently stands at 9.6% nationwide. In response, the Bank of Mongolia has raised the policy interest rate from 10% to 12%.