S&P Global Ratings affirmed the "B" Foreign Currency LT credit rating of Mongolia on July 21, 2022. The outlook is stable.

The following factors led S&P to keep the credit rating and the economic outlook unchanged:

Mongolia's economy is expected to grow by 2.5 percent in 2022. The outlook for economic growth for the next 2-3 years will continue to be positive due to the influence of foreign direct investment in the mining sector.

Until 2025, real GDP growth is expected to be 6.4 percent per year on average because sustainable investments will be made in mining projects such as Tavantolgoi and Oyutolgoi. At the beginning of this year, the Government of Mongolia successfully concluded a negotiation with Rio Tinto regarding the Oyutolgoi project, and issues related to cost overruns were resolved.

Maintaining the credit rating at ‘Stable’ in the future is due to the expectation that the economic recovery will continue normally. Also, from 2022 Mongolia's budget, debt, and foreign sector situations will improve.

Mongolia’s external debt risk is decreasing with the credit support of international donor partners. The Bank of Mongolia successfully extended the CNY 15 billion swap agreement with the People's Bank of China in August 2020 until 2023.

Concerns about potential sovereign defaults among Asia’s frontier markets are growing with the Economist Intelligence Unit joining Malayan Banking in warning of risks amid faster inflation and rising borrowing costs.

Laos has the highest chance of non-payment in the next four years, followed by Mongolia, the EIU said in a report, adding that Myanmar is also a potential risk.

Global bond investors are becoming more wary of the threat of a historic cascade of defaults after Sri Lanka and Russia halted debt payments this year.

The concerns are more acute in frontier economies struggling with surging imports that are cutting into their reserves, compounded by aggressive interest-rate hikes from the Federal Reserve which are driving up borrowing costs globally.

It’s a risk that’s been echoed about vulnerable developing economies around the globe this year, with Bloomberg Intelligence pointing to particular uncertainty in El Salvador, Ghana, Egypt, Tunisia and Pakistan.

There are now 21 emerging markets with sovereign debt that trades at distressed levels – yields more than 10 percentage points above that of similar-maturity Treasuries – which can indicate investors believe a default is a real possibility.

That’s more than double the number at the end of 2021, according to data compiled from a Bloomberg index.

“Our analysis indicates conclusively that Laos and Mongolia are most at risk of following Sri Lanka into default in 2022-2026, with the former of more immediate concern,” EIU said. Despite forecasts for relative stability in Myanmar, “an escalation of the domestic conflict could come with little warning, jeopardising the sovereign’s repayment capacity”.

The outlook for Myanmar’s economic growth remains weak as surging inflation, dollar shortages and lingering domestic conflict pose challenges to its pandemic recovery, according to a World Bank report this week.

On June 9, 2022, the court of the Khan-Uul district of the Mongolian capital Ulaanbaatar sentenced the champion judoka and the former president of the Mongolian National Olympic Committee (MNOC) Naidangiin Tüvshinbayar to 16 years in jail for brutally murdering his childhood friend and a fellow judoka Erdenebilegiin Enkhbat, putting an end to a legal saga that kept the nation in awe for more than a year.

After becoming the first Mongolian to ever win an Olympic gold medal in Beijing 2008 and later, in London 2012, the first Mongolian Olympic multimedalist, Tüvshinbayar was destined to rise to stardom in a country that traditionally reveres wrestlers, and his success, according to Reuters, “prompted leaders from feuding parties to join thousands of revellers in the streets to celebrate their champion.” Indeed, he soon became known as the person whose victory helped Mongolia overcome the parliamentary deadlock between the rivals Democratic Party and Mongolian People’s Revolutionary Party (MPRP) following a post-election violence that claimed five lives in July 2008, while CNN would generously credit him as the sports legend who single-handedly sparked the country’s interest in judo.

Along with being decorated with the country’s highest professional and athletic awards and titles, including the Hero of Labor order (Хөдөлмөрийн баатар), he soon became one of the most prominent media icons in Mongolia, featuring in Pepsi ads and, of course, in political campaigns, as his fame as a “unifier of the Mongolians in times of trouble” carried on. Thus, he became the campaign promoter of the Democratic Party’s presidential candidate Khaltmaagiin Battulga, a former world champion wrestler, who would eventually win the elections in 2017 in the second round with a narrow margin of 50.6 percent. Besides being an extravagant and controversial politician and businessman, who named his group of companies “Genco,” in reference to the name of the Corleone family’s company in “The Godfather,” as well as the builder of the biggest equestrian statue in the world, Battulga was also the president of the Mongolian Judo Federation, so that the success of Mongolian judokas, including the Olympic triumph of Tüvshinbayar, was often attributed to him.

Already before the presidential elections of 2017 Tüvshinbayar was regarded as the protégé and a close associate of Battulga and the Democratic Party, so that in 2016 he, a native of the Zavkhan province, participated in the parliamentary elections in the Bayankhongor province in southwestern Mongolia, the traditional constituency of the president-to-be, just to scandalously lose by a margin of 98 votes. A few weeks later he gave up his bid for the third Olympic medal by losing in the first round at Rio 2016, and this failure was broadly linked to his involvement in the election campaign and neglecting athletic duties. In 2020, he was about to participate in the parliamentary elections again from the same district, but instead ran as a sole candidate for the presidency of the Mongolian National Olympic Committee with the backing of the country’s president, and was elected by a sweeping 94.6 percent. Interestingly, in February 2022, he was appointed the adviser to the current Prime Minister Luvsannamsrain Oyun-Erdene, who, by the way, serves as the chairman of the rival Mongolian People's Party.

However, after his protector became the president of Mongolia, Tüvshinbayar was accused of being a bully while gaining notoriety for his excessive alcohol consumption. Prior to the deadly brawl in 2021, he was involved in at least three instances of physical violence, one of them right on the eve of the presidential elections of 2017. The future president had to deny it and even defended Tüvshinbayar in a public interview while casting his vote:

Translation Original Quote

How could that be possible? You should stop believing in such things. Not only would champion Tüvshinbayar never beat a person, he would never touch anybody.

The president would be proven wrong. On April 2, 2021, while meeting with a few prominent Democratic Party figures from his native Zavkhan province, including the provincial governor, chairperson and representatives of the municipal council, an intoxicated Tüvshinbayar attacked and beat up his childhood friend and a promising star of Mongolian wrestling (үндэсний бөх), the holder of the rank of “national falcon” (улсын начин), Erdenebilegiin Enkhbat, after allegedly knocking him out with a heavy object. Suffering from numerous traumas and severe brain damage, Enkhbat passed away in a South Korean clinic on December 24, 2021 at the age of 37, without regaining consciousness.

After the bloody assault, many were hesitant to openly blame the legendary athlete, as was the case of the Prime Minister Oyun-Erdene, who bluntly stated that it was “inappropriate for him to say whether Tüvshinbayar was right or wrong,” praising, nevertheless, his “glorious” deeds in unifying the nation during the time of turmoil. Today, after more than a year since the heinous attack, the legendary hero who gave honor to the nation is slowly but steadily turning into a national villain, taking along with him the political reputation of the former president Battulga.

In the meantime, according to the United Nations Office on Drugs and Crime (UNODC) data, Mongolia holds one of the worst homicide rates in Asia ranging annually between 7.24 and 5.98 (per 100,000 population) between 2014 and 2020, compared to that of 6.66 of Afghanistan (2018), 3.23 of Kazakhstan (2020), and 2.19 of Kyrgyzstan (2018). In Europe, only Russia has a higher homicide rate of 10.7 (2020). According to the World Health Organization (WHO) homicide data, in 2019, 197 intentional homicides were registered in Mongolia, compared to 90 in Georgia, the country with a compatible population. According to official national statistical data, the number of criminal actions causing deaths (intentional and unintentional homicides, accidents, suicides and inducing to suicide) rose by 17.3 percent from 382 in 2020 to 448 in 2021. According to a parliamentary report, between 70 to 80 percent of intentional murders in the country are committed under the influence of alcohol. What is even more alarming, for the first six months of 2022, the overall crime rate in Mongolia rose by a frightening 89.9 percent compared to the same period of 2021.

Written by Zhar Zardykhan

Rank-and-filer Ichinojo won his first title on Sunday at the Nagoya Grand Sumo Tournament with 12 wins and three losses.

Ichinojo and Yokozuna Grand Champion Terunofuji were tied with 11 wins before the final day.

Ichinojo beat Ura on the final day, while Terunofuji lost to Ozeki Champion Takakeisho in the final bout.

Ichinojo became the first wrestler from the Hiramaku group, the lowest of the five ranks in the top Makunouchi division, to win a championship since Daieisho at the January 2021 tournament.

Ichinojo also became the eighth Mongolian-born wrestler from the Makunouchi division to win a title.

He did not take part in the last tournament because of a coronavirus infection.

Ichinojo maintained his style of pushing while grabbing his opponent's belt with his left hand throughout the tournament, and beat Terunofuji on the fifth day.

SEOUL: Southeast Asia is becoming a new battleground for South Korean convenience store chains, with local brands rushing to open stores in countries such as Malaysia and Vietnam.

Local convenience store chain GS25’s operator, GS Retail, said Monday it has joined hands with Malaysian retail conglomerate KK Group to make forays into the Malaysian market, reported Yonhap news agency.

KK Group operates 610 KK Mart convenience stores in Malaysia and owns other businesses, such as hotels and resorts.

The two companies will open their first GS25 convenience store in Malaysia next year, under a “master franchise deal” where KK Group pays royalty fees to operate GS25 stores in the Southeast Asian country.

Their goal is to further expand the number of GS25 stores to 500 over the next five years, it said.

Malaysia is GS25’s third entry overseas, after Vietnam and Mongolia.

Southeast Asia is seen as a promising market for local convenience store operators due to its relatively young population and rapidly growing fast-moving consumer goods (FMCG) sector.

South Korea’s largest convenience store chain by the number of stores, BGF Retail, recently opened its 100th CU store in Malaysia’s southern state of Perak and plans to increase the number to 500 within the next five years.

Emart 24, the fourth-largest local player by the number of stores, also operates 20 stores in Malaysia.

Competition is heating up in Mongolia as well.

CU operates 225 stores in Mongolia as of June this year. Its competitor GS25 operates 70 stores there since its entry last May. - Bernama

China’s C919 narrow-body jet, the country’s first domestically designed commercial passenger aircraft, is nearing certification, having successfully passed test-flight tasks, state-owned manufacturer Commercial Aircraft Corp of China (COMAC) said on its official social media account on Saturday, as cited by Reuters.

According to the manufacturer, six test planes successfully finished their tasks and the aircraft is now ready to receive a flight certificate from the Civil Aviation Administration of China, which is necessary for commercial operations.

Beijing launched the C919 aircraft program back in 2008, but it faced a flood of regulatory and technical setbacks, including US export controls. While the plane is assembled in China, the C919 relies on Western components, such as flight controls and jet engines. Production started in 2011, and the first prototype was ready in 2015.

The first C919 is expected to be delivered to state-owned China Eastern Airlines in August. The airline placed an order for five C919 jets back in March 2021.

The C919 was designed to rival Europe’s Airbus 320neo and the US Boeing 737 MAX planes. However, this may prove difficult, as Airbus has a strong presence in the country (142 planes were delivered to Chinese companies in 2021 alone), and the Boeing 737 MAX was cleared to operate in China again earlier this year after two fatal crashes grounded the plane in 2019. At least 100 MAX planes are expected to be delivered to Chinese carriers this year.

Ambassador Extraordinary and Plenipotentiary of Mongolia to the U.S. U.Batbayar visited George Mason University and met with the university’s Presidential Chief of Staff Ken Walsh.

While expressing gratitude to George Mason University for implementing the 2+2 program in cooperation with the Mongolian University of Science and Technology, the Ambassador discussed the ways to effectively implement this program. The sides also agreed to implement the university’s scholarship program in Mongolia and involve Mongolian students in the 3+2 program.

This year marks the 50th anniversary of the establishment of George Mason University. 40,000 students study in the university’s four branches in Fairfax, Arlington, Manassas, and Incheon, South Korea.

Peruvian YouTuber, interpreter Andrea Alessandra Daza La Rosa, known as Andi, gave the following interview to talk about her stay in Mongolia, her lifestyle and her point of view. She is studying in Seoul, South Korea to become a Korean language teacher but is also learning Mongolian on her own and making vlogs in Mongolian on her YouTube channel, Andi’s Diary.

How long do you plan to stay in Mongolia?

At first, I planned to stay in the country for a month but I like this place so I think I will be here for two months.

How was your first impression of Mongolia? Was it different from your expectations?

Even though I have many Mongolian friends in South Korea, I didn’t know much about the country. When I started learning Mongolian, I really enjoyed Mongolian songs. I used to watch a lot of music videos. From those videos, I could see some parts of Ulaanbaatar or the country. Before coming here, I got a small image of this country through these things. When I decided to come here, I told some of my Mongolian friends, “I will go to your country soon.” They said, “No way, why? It’s a dangerous place!” and advised me to be careful, not to walk alone on the street or talk to strangers. Therefore, I was so afraid. In the beginning, to be honest, I was also a little worried because it was my first time going to such an unfamiliar place by myself. I used to live in China to study. But when I went to China for the first time, I could already speak Chinese. When I was studying there, I traveled to South Korea with my Korean friends. Hence, before I moved to South Korea, I already knew what the country would be like.

I thought about what would happen in Mongolia while waiting for the plane at the airport because my Mongolian friends warned me that this place is very dangerous. But when I came here, my first impression of the city was like, “This country looks like my country.” I did not think that this place would be so similar to my country, especially the streets and buildings. Since we live in South Korea, my friends probably gave me those warnings and maybe they think it might be a dangerous place for me compared to South Korea. But I found Mongolia identical to my country. I don’t think it’s a dangerous place because I know that some South American countries are more dangerous. There were drunken people on the streets of Ulaanbaatar, but I didn’t feel any danger here. But of course, if I ignore them, everything will be fine. Mongolians are very friendly. This place is better than I thought.

When you came here, you went to the Playtime Festival and traveled to some places near Ulaanbaatar, right? Can you share your best memories from these travels?

I went to a concert by Ice Top boy band the first week I got here. My friend bought me a ticket for this concert, but I went by myself. I had no idea how concerts were held in Mongolia. According to the ticket information, the concert was supposed to start at noon. However, I went there at 2:00 p.m. thinking that it might not start at that time. When I got there, people were waiting outside the Central Stadium where the concert was held. It was really hot that day. I was wearing a jacket but it suddenly started raining. I guess the concert was stopped twice due to hail and heavy rain. People started running to cover themselves from the rain. I was like, “What’s going on?” and ran after the others. Then, the rain stopped and people came back to the stage. I was very close to the stage. It started raining again, but people didn’t care anymore. They were just jumping, singing and dancing. I thought I should go home because I got all wet and it was a cold night. But then, I realized that there were a lot of people behind me. Since there was no way out, I stayed there. Then, my cell phone died because water got into it. The two girls in front of me asked for my Instagram account and we had a great time together. It was my first concert experience.

I also went to the Playtime Festival. I had so much fun. I somehow lost my money there. So I only had money left for half the ticket. When I gave half of the ticket, I was nervous and didn’t know what to do and the girl selling the ticket paid for the rest of the ticket. She was so kind.

You can speak many languages, namely Spanish, English, Chinese, Korean and Portuguese. Why did you decide to learn Mongolian?

I am interested in learning difficult languages in general. So I learned Chinese. It is said that Mongolian is also a difficult language to learn. Since I started learning Mongolian later, my Mongolian is still a little poor. In particular, I first prepare and memorize what I will talk about and make my YouTube videos. I want to learn Russian in the future.

I found it interesting that you make YouTube videos in Mongolian. Why do you make your videos in Mongolian?

I thought Mongolian food was really delicious, so I immediately tried making khuushuur. Mongolian food is very similar to Peruvian food. So, for the first time, I made a video of myself making khuushuur and uploaded it on YouTube. The khuushuurs I made were very tasty. Then, Mongolians saw my video and left a lot of positive comments. They said, “Good luck, beautiful girl”, “You speak Mongolian well”, and “Make more interesting videos”. Therefore, I started making the next videos in Mongolian.

In general, how are people’s comments on YouTube? How do Mongolians react to your videos?

Mongolians are very friendly and kind. People always try to help me learn things I don’t understand. I read a lot of comments from Mongolian people. Some people say, “You have to be careful in Mongolia. They are mean. You shouldn’t trust people.” But I think that’s not true. Of course, in every country, there are all kinds of people. As a foreigner, I see that in general, Mongolian people behave properly. There are a lot of nice people.

You said you liked Mongolian food a lot. What is your favorite Mongolian dish?

Yes, I love Mongolian food, especially khuushuur and buuz. I have tried making many Mongolian dishes on my own. The most difficult dish to make was buuz because I couldn’t fold them. I don’t understand how people can wrap it so quickly. I also love banshtai tsai (milk tea with dumplings). I love eating it on a cold day.

You have lived in many countries. Have you ever thought of living in Mongolia? Do you see it as an affordable place to live in?

To be honest, groceries and consumer goods seemed more expensive than I expected.

Besides learning languages, what else do you like to do?

I like playing the piano and traveling. I am also interested in making YouTube videos and trying different cuisines.

What is your favorite Mongolian artist?

I like many singers. The first Mongolian singer I started listening to was Uka. My friend showed me her songs and I thought her style was really cool. The artists I listen to the most are Roockie, Vandebo, AM-C, The Wasabies band and NMN. I like most of their songs. I would say my favorite singer is AM-C because I think he is very cute and handsome. He used to be my crush.

Do you plan to make other types of YouTube videos in the future?

Yes, I will make more interesting travel videos in Mongolia. I also want to make some videos, asking questions from random people.

Russian oil companies, affected by the Western measures, are offering massive discounts to their customers. This is the case of Mongolia, which obtained an agreement to buy gasoline at a reduced price from the company Rosneft. Thus, the agreement guarantees the Russian company an export of refined products while the market is shrinking considerably.

Agreement between Mongolia and Rosneft

Rosneft specializes in oil extraction, processing and distribution. It is the second largest oil producer, after Gazprom.

The negotiations between Mongolia and Rosneft will allow the country to offer gasoline at retail prices 35% below the market price. As a result of the agreement with Rosneft, the Mongolian government will be able to reduce the price pressure on its citizens. In fact, Mongolia will pay $840 per ton of Al-92 gasoline or about $99.4/bbl.

The selling price of fuel in Mongolia will be offered at 2,390 Togrog/liter, equivalent to 76 cents, until the end of 2022. This is about 1,340 Togrog/liter (43 cents) less than the market price.

According to Yondon Gelen, Minister of Mines and Heavy Industry:

“The significant reduction we are able to secure through the end of the year will protect consumers and businesses and help strengthen Mongolia’s recovery from the COVID-19 pandemic.”

In fact, the significant reduction in prices until the end of the year will help ease the cost of living in the country.

This decision also underlines Russia’s strategy to offer gasoline at reduced prices. Because of the sanctions, it wants to secure outlets for its oil exports.