“Outstanding loan amount reached MNT12.7 trillion, up by MNT28 billion compared to last month. Loan by individuals occupies 52 per cent of total loan, while 42 per cent by private companies. 7.9 per cent of them is overdue and 8.6 per cent is insecure. 945 citizens got mortgage loans of MNT56 billion, totaling mortgage balance to MNT4.1 trillion. 1.8 per cent of mortgage is insecure and 2.3 per cent is overdue.

Balance of payments had a deficit of USD164 million, while trade turnover amounted to USD2 billion, up by USD523 compared to the same period of last year. The import growth of oil by USD71 million and heavy machines and equipment import by USD78 million as well as coal export increase by USD440 million influenced it, he said.

The foreign debt of Mongolia is USD24.9 billion in the first quarter, including Government debt of USD5.8 billion and Bank of Mongolia’s USD1.7 billion and debt of commercial banks and other sectors makes 70 per cent of total foreign debt.

Journalists asked questions after the briefing.

How much foreign exchange reserve does Mongolia have now?
Foreign exchange reserve of Mongolia equals to USD1.2 billion, which means equal to 3.2 months’ need supply. Within IMF agreement, the reserve will reach USD1.6 billion at the end of this year and USD4 billion by 2020.

How much mortgage loan is being issued monthly to citizens?
Monthly mortgage issuance totals to MNT25 billion. Next year, mortgage program will be transferred from the Bank of Mongolia to the Government. Now we are carrying out a study with a World Bank expert and the Government.

Economic growth in the first four months has gone beyond the expectation. What were the factors?
Economic growth was 1 per cent at the end of 2016 due to mining sector growth. This year, the growth is expected to be minus 2.1 per cent this year. In connection with mining sector growth, economic predictions have been updated and economic growth would be minus 0.2, according to the new prediction. It is highly probable that the growth would exceed the expectation, if large scale projects are realized successfully.

In this regard, it would be open for Mongolia to use an airport of Czech as an intermediate stop when launching new flights from Mongolia to European countries, according to Mongolia's road and transport ministry. 
Minister D.Ganbat, pointing out that transport cooperation between Mongolia and Czech is an important to strengthen the bilateral economic relations, mentioned Mongolia is planning to establish an agreement on international road transport with the Czech. Then, the citizens and enterprises of Mongolia and Czech will take advantage of an opportunity to travel reciprocally, run trade activities, and further opportunities to improve bilateral economic relations and to increase trade turnover will be created.
B.Oyundelger

Within the framework of the program, aimed at implementing economic reform in Mongolia, a total of USD 5.5 billion will be financed by international organizations, including IMF, World Bank, Asian Development Bank and JICA, as well as some countries which have bilateral ties to Mongolia, such as Japan, the People’s Republic of China and the Republic of Korea.

The program will provide positive results in the economy such as price stability, increased foreign-exchange reserves to about USD 4 billion, stabilized exchange rate of MNT against foreign currencies, proper foreign debt structures and debt sustainability.

Also, legal reforms aimed at improving BoM’s governance, strengthening its independence and ensuring financial stability will be made. For instance, making amendments to provide legally assured environment of independence to BoM. As well as to provide chance to efficiently resolve issues related to the amendments.

In order to sustain stability in the banking sector, a comprehensive assessment will be conducted in commercial banks. Through this assessment, current situations of the banking and financial system will be assessed in details, enabling for a chance to determine the activities required to expand financial intermediation.

"Healthy and safe operation of banking system will benefit the private sectors by supporting domestic and foreign investments” said D.Orgil, spokesman of BoM.
B.Tugsbilig

Nepal and China had signed a Memorandum of Understanding on Belt and Road Initiative on May 12 in Kathmandu before Nepali delegation led by Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara participated the Belt and Road Forum for International Cooperation in Beijing on May 14.

Speaking at the 14th meeting of Nepal-China Non-governmental Cooperation Forum on Thursday, a platform of apex private sectors of two countries, Mahara said Nepal should take advantage of the opportunity to attract more Chinese investment in Nepal.

"Nepal is very much keen to take advantage of China's high economic growth," he said.

Bhawani Rana, President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex private sector body of Nepal, said following the signing of the MoU on Belt and Road Initiative, the door has been opened for more cooperation between two countries.

"There is a lot of scope of investment from China in the areas of hydropower, manufacturing sector, tourism and road infrastructure under public-private partnership modality," she said.

The forum was formed in 1996 with the joint initiative of FNCCI and All China Federation of Industry and Commerce (ACFIC) to promote economic and business cooperation, joint ventures and cultural exchanges from the private sectors of two countries.

On the occasion, Chinese Ambassador to Nepal Yu Hong stressed that Nepal needs to take measures to improve investment climate including in the areas of policy stability and infrastructure development.

Apparently, Alibaba’s investment is motivated by rival Tencent Holdings being a stakeholder in Meituan-Dianping and also has a small stake in Ele.me.

China’s two largest internet companies Alibaba and Tencent have been focusing on the so-called on-demand services as a way to promote their lucrative online payments services.

Sales of on-demand services are expected to exceed $1 trillion this year in China as people turn to their smartphones or the web to order food, schedule beauty treatments and hire domestic helpers. Growth in local food and restaurant transactions is forecast to outstrip many other retail segments in the world’s second-largest economy.

Tencent is now “putting up quite a big initiative around the restaurant vertical” to propel WeChat Pay, said the company’s President Martin Lau. He added the firm had lost market share in restaurants but is “putting aside a pretty good budget to get back on the competition front.”

Alibaba’s deal with Ele.me which translates from Mandarin as “Are you hungry now?” was first reported in December 2015. The startup has previously raised $3 billion from Uber competitor Didi Kuaidi and a group of investors.

Officials from the EU are reportedly seeking to draw up a euro budget able to incorporate a fixed tax payment from all the member states. The raised cash is for investment across the bloc.

However, the EU Commissioner for the Euro and Social Dialogue Valdis Dombrovskis, says the whole thing has been misunderstood.

“There has been some confusion. What we discuss in the coming reflection paper is the completion of the economic and monetary union. It doesn’t mean the EU member states must adopt the euro. There is no specific time schedule, but we naturally encourage all member states to make the necessary preparations,” the EU Commission’s Swedish site quotes Dombrovskis.

The euro is the sole currency for 19 members of the bloc. The nine remaining countries, including Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, and the United Kingdom, that is currently in the process of quitting the EU, do not use the euro as the main national currency.

The EU Commission is reportedly due to hold a meeting regarding the future of the euro on May 31. The cabinet wants to re-establish control over the euro, according to the German tabloid.

OPEC held a meeting at its headquarters in Vienna, Austria, on Thursday. Participants agreed on the 9-month extension, citing the need to ease the glut of supply. The cuts originally were to finish at the end of June.

At a separate meeting with OPEC members, leading non-OPEC countries, including Russia, agreed on the extension.

The agreement is apparently in line with a similar deal struck between Saudi Arabia and Russia on May 15th.

OPEC and non-OPEC nations implemented the reductions in January to raise crude prices. But a rise in oil prices has been capped by expansion of shale oil production in the US.

Observers say the same cycle may occur again, clouding the prospect for higher crude prices.

“- Since the Government and Bank of Mongolia reached an agreement with IMF to implement EFF, credit rate of Mongolia has improved and investors’ trusts have been raised. In other words, economy of Mongolia has transferred from fall to growth and green light has been lit in the economy. The first funding of USD38.6 million will be disbursed very soon” said the Finance Minister. Later today, the Bank Mongolia reported that the funding of USD 38.6 million has been deposited into the central bank from the IMF.

If private sector financing is added, then the total amount of EFF will reach USD6 billion. The funding will be considered as the biggest in IMF history of operation in terms of GDP relations, said Mr Neil Saker. “The program will aim to stop high economic growth and drastic fall, ensuring stable economic growth of 8 per cent. Mongolia has potential and resource to ensure such growth”, he noted.

The program aims to stabilize the economy, restore confidence, and pave the way to economic recovery. A critical pillar of the program is fiscal consolidation, to reduce the pressure on domestic financial markets, stabilize the external position, and restore debt sustainability. The program includes important safeguards to protect the most vulnerable during this period of adjustment as well as institutional reforms to make sure the fiscal adjustment is durable. Another pillar of the program is a comprehensive effort to rehabilitate the banking system and strengthen the Bank of Mongolia. A broad set of structural reforms is designed to support private-sector led growth. 
B.Ooluun