Mongolia's economic growth was higher than expected, said Geoff Gottlieb, who led an IMF team to Ulan Bator, the capital city of Mongolia from Jan. 24 to Feb. 6.

During the evaluation trip, Gottlieb and his team discussed, with the related authorities of Mongolia, the third review of the three-year Extended Fund Facility (EFF) arrangement approved on May 24, 2017, in an amount equivalent to about 434.3 million U.S dollars.

The arrangement is part of 5.5 billion dollars from donor countries, including Japan and South Korea, to support stabilizing the economy and lay the basis for sustainable, inclusive growth.

Mongolia has pledged to end expansionary monetary policies, enforce austerity measures, raise some taxes and reduce welfare spending.

"Mongolia's economy is recovering, reflecting strong international demand for commodities and improving confidence; key macro-economic quantitative targets, including the fiscal deficit and international reserves, have been achieved by large margins," Gottlieb said in a statement.

"However, there are several risks to economic growth. In particular, there is a tendency that external demand for raw materials might reduce and oil price increase," Gottlieb said.

The IMF team leader urged the Mongolian authorities to continue building buffers and implementing the structural reforms necessary for high and sustainable growth.

"Thanks to the IMF's program, many positive changes have been observed in the Mongolian economy," Mongolian Finance Minister Chimed Khurelbaatar said.

"Last year, our economic situation was difficult. Foreign exchange reserves accounted to 1 billion U.S. dollars. Early 2017, we paid 580 million U.S. dollars for bond repayment and we faced a lot of difficult situations," said Khurelbaatar.

"However, with implementing the IMF's program, the economy has recovered and even grown by 5 percent over the past period. Foreign currency reserves exceeded 3 billion U.S dollars, and we drew foreign direct investments of 1.1 million U.S dollars," said Khurelbaatar.

The minister also noted that Mongolia's budget revenues exceeded 600 billion MNT or tugrik (246.3 million dollars).

"In 2018 and 2019, a decision was made on increasing salaries in line with the inflation rate," he said.

The IMF has noted that its program helped resolve Mongolia's foreign debt issue in a positive way, and Mongolia's foreign currency reserves increased by 1.8 billion dollars.

In late November, Khurelbaatar said Mongolia's economic growth was expected at 1 percent in 2017 and 4.2 percent in 2018.

The IMF has predicted Mongolia's GDP growth at 5.0 percent in 2018 and 6.3 percent in 2019.

The delegates got acquainted with activities of ‘Uvs Food’ JSC and exchanged views on feasibility to sell seabuckthorn products on Russian market.

They also talked with authorities of the province about infrastructure work progress of Borshoo-Khandgait border checkpoint, construction of M-54 road in routes between Kyzyl-Chadan-Tyva and preparation of ‘Uvs Days’ event to be held in May in Kyzyl, Tvya. Within the framework of the event sports and cultural activities, joint forum to present tourism opportunities in Uvs province and ‘Made in Uvs’ exhibition will be organized.

Moreover, a joint meeting between businessmen of Uvs and Tyva was held discussing pressing issues to them and agreed to collaborate.

Representatives of Tyva Government and Chamber of Commerce and Industry participated in inauguration of ‘Lunar New Year-2018’ exhibition and agricultural companies and individuals from Tyva introduced their goods such as honey, cookies, meat and meat products and breakfast products at the exhibition.

B.Batchimeg

Earlier this week, Chairman of the Democratic Party Erdene Sodnomzundui submitted a questionnaire on LCIA’s decision, Government’s measures and involvement on the issue. Sumiyabazar Dolgorsuren, Minister of Mining and Heavy Industry, has previously confirmed that EMC is obliged to pay monthly payment of USD 900 thousand.

On the other hand, Minister of Justice and Home Affairs Nyamdorj Tsend claimed that the dispute is between Standard Bank and EMC only and denied any involvement of Mongolian Government in the dispute, while Minister of Finance Khurelbaatar Chimed was clueless about the situation as he commented, “I do not have details on EMC.”

The Government has been obliged to repay a total of USD 102 million, including the legal costs, penalty and interest of the last decade.

According to a reliable source, LCIA has sanctioned the operations of EMC and suspended its financial accounts. The legal proceedings started about a decade ago after Batkhuu Sharavlamdan, CEO of Just Group, was accused of Loaning USD 140 million from Standard Bank of South Africa, collateralizing Mongolian Government’s 51 percent ownership of EMC.

Tugsbilig.B

Calling localities an important force for China-Russia all-round win-win cooperation, Xi said he and President Putin decided to hold years of China-Russia local cooperation and exchange in 2018 and 2019.

Xi voiced his hope that it would inspire enthusiasm for local bilateral cooperation, further tap cooperation potential and encourage more localities, enterprises and people to join the cause of China-Russia friendly cooperation and common development.

Both China and Russia are at an important period of national development and rejuvenation, Xi said in his message, adding the development plans of both countries enjoy a high degree of affinity, and bilateral local cooperation is promising.

He called on both sides to make the event a new spotlight in bilateral ties, and work together for a splendid future in relations.

Putin hailed the progress of Russia-China all-round partnership of strategic coordination, adding that the years of local cooperation and exchange would cement contact and cooperation between various Russian federal subjects and Chinese localities.

There will be more than 100 activities including an investment conference; trade, industry and agriculture exhibitions; seminars; art festivals; and exchange of visits.

Representatives of the two countries will meet at the International Economic Forum in St. Petersburg, Eastern Economic Forum and Russia-China Expo, Putin said, adding that he believes the years will fully exploit the potential for local cooperation.

Chinese Vice Premier Wang Yang addressed the opening ceremony in Harbin, capital of northeast China's Heilongjiang Province, together with Russian Deputy Prime Minister Yury Trutnev, also presidential envoy to the Far Eastern Federal District of Russia.

They also hosted the meeting of the Intergovernmental Commission for Cooperation of the Northeast China and the Far East and Baikal Region of Russia.

Wang hailed the progress of China-Russia local cooperation, citing rapid growth of trade between China and Russia's Far East, as well as enhanced investment cooperation and cultural exchanges, and progress in interconnectivity projects.

China appreciates Russia's new measures to promote development in the Far East and facilitate people-to-people exchanges, and expects these measures to have good outcomes, Wang said.

Calling China one of Russia's most important political and economic partners, Trutnev said Russia hopes to work closely with China to speed up infrastructure building, and boost local cooperation.

Last year, Mongolia produced 5413 tonnes of washed cashmere, 509 tonnes of combed cashmere and 915 thousand of goods made from the wool.

If Mongolia can produce processed cashmere domestically, the country would be able to export to19.8 million textile goods annuall

Evidently, this is 'fake news'. The Finance Ministry confirmed that the Government of Mongolia will not issue any bonds in the near future. Under the IMF programme, Mongolia's credit rating has increased and the economy is much recovered; the government intends to focus on positive performances.

During the meeting, the state policy for water conservation, proper use and wastewater recycling and reuse and the introduction of future works were presented by Sh.Myagmar, head of the Land Management and Integrated Water Policy Coordination Department. “A bill to Amendments to the Law on Water Pollution Payment are ready for Parliamentary discussion. The backbone of the bill is to encourage enterprises with state policy to reuse water. The policy of the Minister N.Tserenbat is to make technological renovations in companies so that they reuse water as much as possible through providing soft loans to them” he said.

The representatives of the companies exchanged views on the water saving, water reuse projects and advanced technologies they introduced.

B.Misheel

A parliamentary panel this week approved a proposal to limit to just 100 each year the number of new resident permits granted to foreign or stateless people over the period from 2018 to 2020, with just 30 each from China and Russia, legislator Tsend Nyamdorj said.

The measure will now be considered by parliament.

"If the standing committee approves the bill, it makes it very likely the parliament would have no problem passing it," said Mogi Badral Bontoi, chief executive of market intelligence group Cover Mongolia.

Although open to foreign trade, the former communist, one-party state has been careful to prevent an influx of foreign labour.

Mongolians especially mistrust Chinese workers, not only because of long-standing geopolitical tension with their giant neighbour, but also because they can be hired cheaper and work longer hours.

Unemployment in Mongolia stands at 9.1 percent, the National Statistics Office says.

The strain with China can be traced back to centuries of subjugation, with Mongolia only achieving formal independence in 1921. The Soviet satellite state served as a buffer between China and the Soviet Union until 1990, when it peacefully transitioned to democracy.

Rapid economic growth, driven by immense resource wealth, has prompted interest from foreign nationals. Though foreigners now make up less than 0.4 percent of the population, Ulaanbaatar has used high fees and quotas to rein in immigration.

Last year, Mongolia cut its foreign workforce in half, and sent home about 1,200 North Korean workers to comply with the sanctions.

The Oyu Tolgoi copper-gold mine, run by mining conglomerate Rio Tinto, has also been under scrutiny for its use of Chinese labourers.

About 93 percent of the Oyu Tolgoi workforce is Mongolian, exceeding a lower limit of 90 percent set in a 2009 investment pact. During construction, no more than 40 percent of workers could come from overseas.

After an inspection of Oyu Tolgoi last month, immigration officials deported foreign contractors with Australian engineering firm Hofmann Engineering for visa violations.

With just 3.1 million people in an area almost the size of Alaska, Mongolia is the world's least densely populated country.

Many Mongolians are leaving home for work and education elsewhere, including China, and South Korea has eased their pathway to jobs.

"More Mongolians are leaving to work abroad, which means fewer people in the local labour pool," said Bontoi.

"Mongolia capping foreign labour seems very paradoxical."

(Reporting by Terrence EdwardsEditing by David Stanway andClarence Fernandez)