IMF to Loan Mongolia $440 Million as Part of Bailout Package www.bloomberg.com

Mongolia reached an initial agreement with the International Monetary Fund for a three-year program that includes a $440 million loan package as part of a $5.5 billion bailout to help the north Asian country with looming debt repayments.

“The Asian Development Bank, the World Bank and bilateral partners including Japan and Korea are expected to provide up to another $3 billion in budget and project support, while the People’s Bank of China is expected to extend its 15 yuan billion ($2.2 billion) swap line with the Bank of Mongolia for at least another three years,” the IMF said in a statement on Sunday. “The total external financing package will thus be around $5.5 billion.”

Economic growth in Mongolia slowed to 1 percent last year as commodity prices fell and growth slowed in China, the main buyer of the nation’s copper and coal exports. The country also saw foreign investment collapse after a dispute with Rio Tinto Plc over the Oyu Tolgoi copper mine.

The Extended Fund Facility (EFF) will support the government’s plan to address balance-of-payment pressures and also help the government repay looming debts, including the Development Bank of Mongolia’s $580 million bond repayment due in March.

This marks the sixth time since 1990 that the IMF has bailed out Mongolia, the most recent a stand-by agreement in 2009-2010, according to an e-mail from IMF spokesman Keiko Utsunomiya.

Restore Stability

The financing will support a Mongolian program, “which intends to restore economic stability and debt sustainability as well as to create the conditions for strong, sustainable and inclusive growth,” according to the IMF statement. The agreement is subject to the confirmation of financing assurances, the completion of prior actions by the authorities, and the approval of the IMF Executive Board. The board is expected to consider Mongolia’s request in March.

This is “great news, the market will receive this positively,” Dale Choi, head of the research firm Mongolia Metals & Mining, said in an e-mail. It is the “bottom out everyone has been waiting for and the only way is up.”

Ahead of the agreement, parliament amended the development bank law, making changes recommended by the IMF. The amendments were designed to depoliticize the bank and include a rule that board members can’t have held political office in the past five years.

Central Bank

Mongolia’s central bank had $1.3 billion in foreign reserves at the end of December, well below the $4.1 billion it held at the same time in 2012, when money was pouring into Mongolia’s mining sector amid the commodities boom. The tugrik fell 20 percent last year, fifth-worst among exotic currencies tracked by Bloomberg.

“While many Mongolian businesses may feel the short-term pressure of a marginal increase in taxes, the successful implementation of the EFF arrangement in Mongolia will stabilize the domestic currency and boost confidence in the banking sector,” Bilguun Ankhbayar, Chief Executive Officer of the Mongolian Investment Banking Group, said by e-mail. “This will likely result in increased activity in those economic sectors that have the most competitive advantage.”
Foreign exchange reserves should rise to $3.8 billion by the end of the program, according to the IMF statement. By 2019, economic growth is projected to pick up to around 8 percent.

“Fiscal consolidation will leave room for the banking sector, over time, to extend more credit to the private sector, consistent with projected growth. These policies would also put public debt on a declining path over the course of the program,” the IMF said.

The country’s budget deficit at the end of 2016 tripled to 3.67 trillion tugrik ($1.5 billion), compared to a year earlier, while total external trade dropped 2.3 percent and non-performing loans in the banking system rose 25 percent.

“Attempts to stem the decline through expansionary policies proved ineffective after a few years, and the economy is now stagnating, weighed down by high debt and low foreign-exchange reserves,” according to the IMF.

China piles pressure on North Korea by banning coal imports www.bbc.com

Mongolian trade mission to Tel Aviv and Jerusalem, Israel for "Start up and business ecosystem development: Best practices" study visit and business program. www.mongolianbusinessdatabase.com

Mongolian Business Database (MBD) and ConSolWays, Israeli-Mongolian consultation, Solution and business development firm with support of Mongolian National University's Business school are hosting a Mongolian trade mission to Tel Aviv and Jerusalem, Israel for 4 days study visit and business program on "Start up and business ecosystem development: Best practices" between March 25-31.2017.
The study visit program includes the business subjects on Agriculture (Green houses, agriculture export ecosystem) , IT Sector ( international accelerators) , health, communication, banking security, fintec and visits to other related institutions.
Please visit to following link for information in details and contact at contact@mongolianbusinessdatabase.com e mail, 77109911, 99066062 for the registration and inquiry.
The registration will close in March 15, 2017.

National Council on Mongolian Studies meets www.en.montsame.mn

Huawei plans voice assistant for phones www.chinadaily.com.cn

EU parliament approves free trade pact with Canada www3.nhk.or.jp

Agreement on Partnership and Cooperation with EU approved www.montsame.mn

Ulaanbaatar /MONTSAME/ The European Parliament gave consent to the Framework Agreement on Partnership and Cooperation /PCA/ signed between Mongolia and the European Union in 2013 and adopted a resolution during its plenary session held on 15 February 2017.

Wool products handmade by herder women popular in France www.montsame.mn

Ulaanbaatar /MONTSAME/ Herder women of the “Friendly women” NGO in Zavkhan aimag started selling more than 30 types of handmade wool products in France in October 2016.

Ulaanbaatar to host JCI Asia Pacific Conference www.gogo.mn

Ulaanbaatar, the capital city of Mongolia to host the JCI Regional Congress for Asia and Pacific 2017 on June 8-11. 
Every year, JCI Area B or Asia Pacific Region Members unite in their regions for JCI Asia Pacific Conference (ASPAC) to exchange ideas, learn how to maximize their local impact and collaborate with other National Organizations in Asia Pacific Area.
The ASPAC give members a chance to take advantage of JCI’s international network while enhancing their National Organizations. At this conference, JCI gives its members the opportunity to address Asia pacific region and international issues and show their commitment to becoming socially responsible leaders.
These regional forum enables members to focus on solutions for their region and how they can grow, improve, share and create positive change across communities.

North Korean players at Mongolian National League www.news.mn

The Mongolian National League basketball competition among teams from the 21 provinces has been taking place in Ulaanbaatar since October. The four provincial teams namely, Arkhangai, Khuvsgul, Sukhbaatar and Orkhon are now competing for medals.