Ulaanbaatar /MONTSAME/ On February 1, Chinese foreign ministry spokesperson Wang Wenbin said on regular press conference that China is providing vaccine aid to developing countries including Mongolia.

Wang Wenbin: China has been acting through concrete actions on President Xi Jinping's solemn commitment of making COVID-19 vaccines, developed and deployed in China, a global public good, thus contributing to greater accessibility and affordability of vaccines in developing countries. That's what we've been saying and what we've been doing.

First, apart from Pakistan, China is also providing vaccine aid to Brunei, Nepal, the Philippines, Myanmar, Cambodia, Laos, Sri Lanka, Mongolia, Palestine, Belarus, Sierra Leone, Zimbabwe and Equatorial Guinea, altogether 13 developing countries. Going forward, we will also assist another 38 developing countries with vaccines. We also take an active part in the WHO-led COVAX and provide vaccines through this platform to developing countries.

Second, China supports Chinese companies in conducting joint vaccine R&D and production with foreign partners. Vaccines made by Sinopharm and Sinovac have been exported to countries including the UAE, Morocco, Indonesia, Turkey, Brazil and Chile where clinical studies have been conducted.

Third, China supports relevant companies in exporting vaccines to countries in urgent need that have approved Chinese vaccines and authorized their emergency use. For instance, Serbia has started vaccination with recently imported Chinese-made vaccines. More and more countries are approving the domestic use of Chinese vaccines.

The whole world needs to pull together in order to defeat the pandemic. China will continue to provide in a timely manner, to the best of its capability, vaccines to relevant countries, especially the developing countries, and contribute its share to building a global community of health for all. We also hope the international community will work together to promote the equitable allocation and use of vaccines globally to make sure developing countries have access to and can afford them.

source: Embassy of China in Mongolia

Ulaanbaatar /MONTSAME/. Regarding the appointments of members of the new Cabinet, Prime Minister L. Oyun-Erdene delivered a speech at the plenary session of the Parliament and introduced four goals of his Cabinet.

At the outset of his speech, Mr. Oyun-Erdene highlighted, “Thanks to the decisive measures of 31st Prime Minister U. Khurelsukh, the air pollution of Ulaanbaatar decreased by 50 percent, and the Government reclaimed lost mineral deposits. Moreover, he started the fight for justice and set a new ethical standard in Mongolian politics.”

“Maintaining the continuity of the Government's policy, we will complete major projects that are inseparably connected to the country's destiny, such as the oil refinery, railway projects, natural gas pipelines, the Tavan Tolgoi power plant, and the Erdeneburen hydropower plant.

Our Government is fully aware that it is facing a lot of challenges, including the pandemic, pandemic-related global economic crisis, the problems for businesses, entities and citizens, social unrest, and the politicization around the upcoming presidential election. Therefore, let me briefly introduce four goals of our Cabinet, which will contribute to our country’s future,” said the PM.

Objective 1. A plan to overcome the pandemic within a short time

Mongolia had prevented the spread of the COVID-19 among the community for ten months, but at last, we could not avoid this suffering. Our Government will develop a comprehensive plan to overcome the COVID-19 pandemic and take immediate actions.

Vaccinating the population is our priority. The Government will do its utmost to involve staff working in the frontline, risky groups, and the public in the WHO-approved vaccines in phases within the first 100 days of the Government.

Prompt vaccination will help to overcome the economic and social difficulties caused by the pandemic in a short period. The Government will include in its action plan a comprehensive package of measures as stimulation for the companies, employers, and small and medium-sized businesses that were most affected by the pandemic. We will intensify the repatriation of our citizens abroad based on the recommendation of professional organizations.

Objective 2. A plan to recover the economy

Despite the pandemic outbreak that has not occurred in 100 years, the global economy will likely have a rapid recovery after humankind overcomes the epidemic. Therefore, we must not retreat from our goals of reviving and growing our economy by being binded by our current mindset caused by the pandemic. We have to start preparing for the post-pandemic economy from now on. Even the issues of citizens’ income and employment cannot be fully resolved without economic growth.

“Supposing Mongolia as a family, we annually overspend an average of USD2 billion than we earn, and 93 percent of our family’s earnings come from non-renewable resources such as coal, gold, copper and iron ore.

To put it bluntly, if a scientific and technological solution is found to replace coal, we will not be able to pay salaries and pensions. Therefore, we must not waste any time. We would have no choice but to make bitter, difficult decisions in the economy. The economic structure, which is overly dependent on mining, needs to be changed when the mining sector is strong.

“Therefore, the main goal is to accelerate the development of science, technology and innovation. …The scientific academies and innovation institutes will be coordinated and organized into a unified cluster to commercialize scientific discoveries. The Government will support and partner with national companies that have started successfully competing in the global market for artificial intelligence, fintech and cloud technology during the Fourth Industrial Revolution.”

The National Sovereign Wealth Fund will be established to make mining revenues more profitable and distribute natural resources fairly and equitably. The Fund will have three directions of activity: accumulation, stabilization, and development. Funding for the sovereign wealth fund will come from mining royalty fees, and profits of the state-owned companies, and will be spent on promoting economic priorities and improving livelihoods.”

“The direct profit of the strategic mining deposits will be improved. We will work closely with the Parliament to significantly improve the Oyu Tolgoi agreements and create the conditions for Mongolia to be lucrative rather than be indebted in return for the use of our resources.

As the head of Government, I will prioritize the following sectors of the economy based on the 'Vision-2050' policy. It includes mining, processing industry, food and agriculture, energy, tourism, SMEs, transport and logistics, creative industry and information technology.”

The Prime Minister also explained in a few words why these sectors are pointed out.

“First of all, we need to make our natural resources become value-added. It is necessary to build plants capable of washing coal, smelting copper, refining oil, and processing iron ore. For example, a ton of coking coal at the Erdenes Tavan Tolgoi mine costs USD 63, but its value rises to USD 200 after being transported and washed at Gantsmod port.

Mongolia imports goods worth USD 6.1 billion annually, of which USD 1 billion is spent on oil products. If the oil refinery is commissioned, it will be possible to supply 70 percent and further 100 percent domestically.

To become an industrialized country, we need to solve our infrastructure problems. The construction of the Tavan Tolgoi–Gashuunsukhait and Tavan Tolgoi–Zuunbayan railways will be completed soon. It will save USD 600-900 million a year in transportation costs and increase the total exports by about 30 percent.

Road projects will be sorted by priority. In the first turn, projects connecting border ports and tourist routes will be implemented. It is vital for our landlocked country to develop the transportation and logistics sector as a whole.

Today, we import 25 percent of our energy that takes an average of USD 140 million a year. To reduce this outflow, it is necessary to complete Tavan Tolgoi and Erdeneburen hydropower projects urgently and start the construction work of the Power Plant V.

Every year, the country imports food products worth USD 605 million. Therefore, there is an urgent need to create an entirely new system of import-substituting, export-oriented agriculture and light industry. Also, it intends to build plants to process animal-related raw materials and basic transportation centers in stages.

Throughout the world, tourism would undoubtedly be the sector that will revive the fastest after the pandemic. We need to resolve some issues without delays, such as eliminating the irresponsibility, red tape, and obstacles foreign tourists face while visiting Mongolia, establishing an e-Embassy, issuing e-visas, and liberalizing air transportation.”

The PM also said that a creative economy based on the country’s history and rich cultural heritage would be developed. In this context, the management of the Ministry of Culture will be elevated to a new level, bringing culture, arts and cinematography to the global level and making it economically efficient.

Councils of economy, entrepreneurs and foreign investment promotion will be formed under the Prime Minister. Moreover, a Ministry of Economy and Development will be established, said the PM.

Objective 3. The new system to support the middle class

"The last 30 years gave us many values, such as human rights, freedom, press freedom, a multiparty parliamentary system, and the market economy. Despite all this, the gap between the rich and the poor increasingly grew, resulting in income inequality, the flourishing of the underground economy, and the loss of social justice. It is the harsh truth that 28.4 percent of the total population or about 1 in 3 people currently lead a below-average life. The inclusive growth of the economy should only be measured by positive changes in the quality of life. Yet, the government has not been able to bring such changes to the citizens’ quality of life.

The moving force of society– citizens with average income are currently in quite a bit of a predicament. In order to transition into a completely new system that supports average income citizens and create a society largely consisting of the wealthy middle class, the most important issue is apartments and urban development. In the coming three years, the Government will carry out a project on the construction of ‘Youth I, II, III’ complex apartments with a unified blueprint, resolving the new financing model for income-based apartments by transitioning into the system of a unified savings fund."

"The second important factor in creating a society mainly consisting of the wealthy middle class is quality education. Although the intellectual capacity of Mongolian children ranks 7th in the world, Mongolia ranks 49th for the ability to utilize intellectual capacity, 59th for home-grown talent, and 111th for its know-how. Thus, special focus will be given to matters including comprehensive education in developing into a model Mongolian citizen, proficiency in the use of the Mongolian language and script, the quality of training in urban and rural areas, increasing the competitiveness of universities and colleges by merging them, and the preparation of world-class citizens. A scholarship named after the Prime Minister will be annually announced, and importance will be given to preparing the new generation that is necessary for Mongolia. The cabinet will present the Package Laws on Education Renewal before the spring session of the parliament."

"Cases for cardiovascular diseases and cancer are common in Mongolia. Experts explain the causes for this being due to how citizens are not diagnosed early as well as their unhealthy lifestyles. Thus, we must quickly implement a system that annually involves all citizens in a comprehensive health checkup. In the coming four years, the construction for the National Organ Transplant Center, the National Cardiovascular Center, the Burn Center, and the National Cancer Center will take place. With its completion, it becomes possible to reduce the annual amount of costs being spent on receiving medical treatment abroad–USD 100-120 million by 30- 40 percent. We need a new culture that promotes a healthy, active lifestyle. We need an education system that helps children acquire a proper understanding of the immune system and nutrition comprehensively from a young age.

The time has come for us to correct our unhealthy mindset and create a national culture that fights against obesity. Furthermore, several crucial issues such as the transition from welfare to labor, increasing the participation of women in the labor market, and creating a specialized bank and financing system will be resolved in phases to create a national system to support citizens in the middle class."

Objective 4. Justice and online governance

"Today, our country ranks 111th for its corruption perception. It is apparent that the underlying factor causing this is bureaucracy and the political system filled with corruption. Thus, the work to create a fair justice system where no one is persecuted or wrongfully convicted will be comprehensively supported. Those that wish to indirectly control the state will be faced head-on.

Henceforth, we will aim to reform the corresponding legislation to create the classical parliamentary system in Mongolia by carefully discussing the matter with political parties. By developing laws on the protection of whistleblowers, the financing of political parties, and civil service ethics will be as according to international legal standards and making amendments to the Law on Anti-Corruption, the appropriate legal environment will be created to monitor whether state servants have expenses above their income as well as whether they are incorrectly declaring their assets and income."

"The work to create a “digital” nation will be actively carried out. All forms of public services will be made available through the E-Mongolia electronic platform. In order to have this transition conducted up till 90 percent in 2021-2024, a specialized ministry will be established on digital development. This will not create any more job opportunities—rather, it is the only solution to reducing the overlap of staff at all levels, reducing the numbers by 30-40 percent. Electronic signatures will be introduced, and the privacy of personal information will be ensured through law. As a result, bureaucracy will be reduced, and less time will be necessary in acquiring the services."

"In order to create good governance, the Government will closely cooperate with the “Fourth Estate”–the press and media. Works will be carried out in respect to the citizens’ right to be informed, upholding the freedom of press. Factual information will be given regarding major issues that bring out debate and uncertainty in the public, supporting a more research-based approach to matters and open, transparent cooperation."

"We will openly and actively cooperate with our eternal two neighbors as well as other countries of the world in all sectors. In today’s world of globalization, the national mindset, way of living, and unique features will be valued, protecting our national identity and organizing pro- motional works about Mongolia to the world on the large scale. I also believe that an institute for national policy should be established consisting of all previous Prime Ministers. Our cabinet will continue to implement appropriate, applicable policies that were implemented by all previous governments."

"Citizens are the foundation of the state. It is the duty of a democratic government to protect civil rights. By having it as a requirement for state servants at all levels to be knowledgeable about civil rights, special emphasis will be placed on their sense of duty to serve citizens and protect their rights. A culture to be ethical, humane, disciplined, and assessed based on performance as well as being held accountable for one’s actions at each level will be introduced in civil service."

“I perceive my appointment as the Prime Minister of Mongolia being in the first year of the implementation of ‘Vision-2050’ long-term development policy, which also happens to coincide with the 100th anniversary of the People’s Revolution, and the 30th anniversary of the Democratic Revolution, as a historically significant responsibility.

Just like how our ancestors were able to change the world’s history in 30 years, may our country lead in the region for its social development, economic growth, and quality of life in the coming 30 years,” noted PM Oyun-Erdene.

On Wednesday (3 February), the Mongolian National Emergency Commission took the painful decision to impose lockdown measures again in Ulaanbaatar city during Lunar New Year in order to prevent the spread of COVID-19 pandemic. The total lockdown for a period of two weeks in the city will take effect on 11February or Lunar New Year’s Eve known as “Bituun” in Mongolia. During the period, only types as organisations such as the media, post, food production and delivery will be allowed to work.

Last month, the Mongolian government made a decision not to publicly celebrate the traditional Lunar New Year. However, Mongolians are still preparing for the holiday which is actually a combination of ringing the old year out and the new year in, as well as a celebration when families get together. During a long holiday of Lunar New Year, Mongolians traditionally visit their parents, relatives and friends.

Mongolia confirmed its first case of COVID-19 in March 2020. Its first local transmission was detected in early November, when a woman tested positive after her husband who had returned from Russia finished his 21-day mandatory quarantine.

The incident triggered a nationwide lockdown that was later extended in Ulaanbaatar and two provinces until 11 December, 2020. After that, the Mongolian government reimposed lockdown measures in the capital city, which was the hardest hit by the coronavirus outbreak, from 23 December, 2020 to 6 January, 2021 and extended the strict all-day lockdown until 11 January to curb resurging local cases

Ulaanbaatar /MONTSAME/ On February 5, Deputy Minister of Foreign Affairs B.Munkhjin and Ambassador Extraordinary and Plenipotentiary of the United Kingdom of Great Britain and Northern Ireland to Mongolia Philip Malone exchanged notes on Mongolia’s accession to the Enhanced Framework of the UK’s Generalised Scheme of Preferences (GSP), which is equivalent to the European Union's GSP+.

Mongolia's inclusion in the UK GSP is of great significance in increasing bilateral trade, reducing the country's dependence on mining, diversifying exports, promoting value-added production, and improving product competitiveness.

Ulaanbaatar, January 28, 2021 – Mongolia’s new Civil Service Law is an important step toward building a stronger civil service that is merit-based and politically neutral, but further reforms are needed, according to a new World Bank report.

The report, Towards a High Performing Civil Service: Reform Progress and Challenges, calls on the country to strengthen the stability, oversight, and management of its civil service to help achieve development objectives. It highlights the latest Civil Service Law, which re-establishes the principles of meritocracy and a career-based model, as a major step toward building a better-performing and ethical civil service.

“With stronger legal foundations in place, Mongolia is now better placed to move forward to improve the efficiency and effectiveness of its civil service. This will require determined leadership to make important strategic and technical decisions to curb politicization and reassert professionalism in the civil service,” said Andrei Mikhnev, World Bank Country Manager for Mongolia.

Mongolia’s annual attrition rate in the civil service increased from around 9% in the 2009-2012 period to more than 22% in 2019. Frequent changes of government, together with high staff turnover due to the lack of a meritocratic system, has negatively affected the civil service’s overall capacity to deliver public goods and services efficiently.

The recent revision of the legal framework, with a heavy emphasis on the prevention and reversal of politicization, will be a crucial step in addressing these challenges, according to the report. Once the foundations of merit-based principles are firmer, some flexibility can be reintroduced in the medium to long-term, so the civil service cadre will be able to respond effectively to the demands of politically appointed ministers to the extent appropriate, while being both professionally competent and sufficiently impartial to serve successive governments of different political complexion.

The report notes that the the hybrid role of the Civil Service Council (CSC) as both a supervisor and an implementer could create a conflict of interest, and calls for a review of the institutional mechanisms for managing and supervising the civil service at all levels.

“Once the principle of a merit-based career civil service has been re-established in Mongolia, the Civil Service Council can work in cooperation with the executive government to delegate personnel management responsibilities to ministries, departments, agencies, and local authorities. This will allow the CSC to transition to a more conventional oversight body,” said Alma Kanani, World Bank Governance Practice Manager for East Asia and the Pacific.

The report emphasizes that the professional status of the civil service must be protected through the reinvigorated entrance examination, which allows access only to those, who meet strict professional requirements and in return are obliged to deliver a high standard of service to the public. The successful implementation of the new performance planning system as well as training for civil servants are key to this professionalization.

The report also notes that the number of civil servants has grown by 34% over the past decade (2009-2019). While the associated wage bill is not particularly high relative to international comparators, it is the fastest growing and largest component of recurrent government expenditures. The report argues that increasing staff is not the solution to meeting the demand for services given the country’s geographic characteristics. Instead, more effective management of existing staff through envisioned reforms would be essential to improving productivity and providing better service delivery.

There has been a long-standing need for reform of the pay and grading structure in the civil service, the report notes. The highly fragmented nature of the payroll has prevented the government from obtaining and analyzing data necessary for the reform. Recent and ongoing efforts by the Ministry of Finance to introduce an Integrated Payroll System are to be commended as a major step in addressing the challenge toward establishing a new human resource management information system that uses comprehensive and consistent personnel data.

The report also highlights the need for the civil service to have appropriate incentives for recruiting, retaining, and motivating skilled staff, in particular, through the principle of equal pay for equal work. This will require simplifying the pay system by merging allowances into basic pay, simplifying the grading structure, and benchmarking pay.

Taken together, the recommended actions for the civil service reform constitute a large program of change, the report acknowledges. The enactment of the new Civil Service Law has already committed the Mongolian government to much of this agenda, but further reforms and their effective implementation would be critical to success. In this regard, the World Bank will continue its support to the government towards strengthening its civil service and public sector performance and accountability for increased people’s trust in the government.

Despite pressure from the UK’s climate change advisors, Prime Minister Boris Johnson’s office says it will not intervene in Cumbria County Council’s decision to approve the country’s first new deep coal mine in 30 years.

The government interrupted the development of West Cumbria Mining’s Woodhouse Colliery project in north-west England in October while it decided whether to call in the application or hand the decision back to local authorities.

Cumbria’s council announced in January it had received confirmation that the decision to allow the coal mine would not be reversed.

Since first proposed, the project has faced steep opposition from environmental groups urging the government to intervene and block it. They claim the new coal mine would emit 8 million tonnes of carbon annually, undermining the country’s pledge to net zero greenhouse gas emissions by mid-century.

As the UK prepares to host the COP26 climate summit in November, considered the most important climate negotiations since the Paris agreement in 2015, the chair of the Climate Change Committee (CCC) has called planning minister Robert Jenrick to reconsider the project’s approval.

CCC’s chair Lord Deben said in a letter to Jenrick that while it was not the council’s role to act as a regulator or a planning authority, he would urge the minister to consider further the UK’s policy towards all new coal developments.

“The Johnson administration’s difficult position echoes a bigger conundrum,” writes Bloomberg‘s columnist Akshat Rathi. “Many countries are trying to balance their desire to contribute to the global fight against climate change against domestic pressures to exploit their own natural resources.”

“Net-zero” goal questioned

The planned mine is expected to produce as much as 3.1 million tonnes of metallurgical coal a year until 2049, one year before the country must have net zero emissions. While the UK will use some of that coal in its steel industry, 85% of it is marked for export to Europe.

In that period, the mine will provide 500 jobs, but the CCC also expects it to add about 400,000 tonnes of carbon dioxide equivalent of emissions each year.

“Of course, job creation is absolutely vital to communities but we must look forward to the jobs of 21st century, not back to those in declining industries,” Greenpeace UK’s policy director Doug Parr said in a statement.

“If we want to avoid dangerous climate change, giving the go-ahead to a new coal mine takes us in completely the wrong direction,” Friends of the Earth said in a separate statement.

A study by the center-right think tank Bright Blue, published in October, shows that most in the UK are skeptical about achieving the net-zero target by 2050.

England’s last operating deep coal mine, Kellingley, closed in 2015, and the Bradley coal mine closed last year, after almost 200 years in operation.

The British Columbia Council for International Education and the Metropolitan Education Department of Mongolia have announced a new partnership that will promote exchange between students and educators in Canada and Mongolia.

Callan first began her media career in China with the expat magazine City Weekend. After travelling around Australia and New Zealand, she went on to launch an NGO-focused magazine in Somaliland and later worked as a freelance editor for China Daily. She has also lectured at Frantz Fanon University and Tianjin Polytechnic on academic English and cross-cultural communication. Get in touch with Callan at callan@thepienews.com

"This MOU... create[s] opportunities for students, teachers, and instructors"

The MOU, which was signed at a virtual ceremony on January 27, was a first between the two groups and will “help facilitate the cultural and academic exchange of BC, Canadian, and Mongolian educational institutions, students, and educators, and strengthen the internationalisation efforts of BCCIE and MED”.

“With a vision to provide equitable and fair access to quality education for all and to prepare educated human resources, the government of Mongolia attaches great importance to its foreign relations with our partner countries,” said Gantulga Jigjidsuren, head of the Metropolitan Education Department of Mongolia, which oversees early childhood to K-12 education in Ulaanbaatar.

“The government of Mongolia attaches great importance to its foreign relations with our partner countries”

“The signing of this MOU cements the foundation for mutual cooperation to explore and create opportunities for students, teachers, and instructors and I believe it marks the beginning of an effective collaboration that enriches the education relations of our two countries.”

Mongolia’s education system has seen investment from and cooperation with many countries over the last few years, including Japan, China and Russia.

While a high proportion of university-aged citizens go on to higher education, graduate unemployment remains an issue.

For Mongolian international students, popular destinations include South Korea, Japan, the US, Australia and Turkey. The vast majority of its incoming students come from China, including from Inner Mongolia.

“Mongolia is a great and important country, a major trading partner of Canada especially in mining, and importantly an emerging market for BC’s education system,” said Randall Martin, executive director of BCCIE.

“Our agreement with MED represents another step towards advancing study abroad opportunities for students and teachers in BC and Mongolia and signifies the commitment both share in fostering global citizenship.”

Ulaanbaatar /MONTSAME/ Regarding with the decision to impose strict quarantine in the capital city on February 11-23, Deputy Prime Minister S.Amarsaikhan presented the types of businesses and services that are allowed to run their operations normally during this period. These services include:

Electric heating, water supply, decontamination and sewerage activities

Healthcare organizations, pharmacies, medical equipment distribution organizations

Gas and fuel supply

Food production, trade, distribution, supermarkets, hypermarkets, minimarkets, grocery stores, wholesale trade, reserve meat and livestock fodder trade

Sterilization, disinfection and cleaning services

Loading and transport services

Online banking services, ATM

Refined coal factories, supply, distribution and sales points

Post office, communications, media

Funeral services

Repairs and other services

Special purpose agencies

Higher legislative body

Public and local self-governing organizations / 15 percent of the staff will work at workplace under time restriction/

State-owned organizations of particular and strategic importance /Ulaanbaatar Railways, Chinggis Khaan airport/

Livestock hay and fodder distribution and transportation

Outdoor maintenance service

Special duty vehicles for production and distribution

Furthermore, public transport will serve for limited number of passengers between 08 am and 18 pm. Traffic movement in and out of the capital city will also be restricted and only vehicles for providing health, emergency, special duty services and funeral services will be allowed.

In addition, “One door-one testing” measure will be implemented during the period of the strict quarantine. 280 medical teams will work to perform diagnosis and testing on 420 thousand households in 10 days. 38 PCR machines will be used alongside establishing 73 testing points in the capital city. It is planned to operate over 90 mobile points if necessary.

Ulaanbaatar /MONTSAME/. On January 29, 2021, the last day of its autumn session, State Great Khural of Mongolia approved a bill on Supporting the Oil Refinery.

The bill is aimed at ensuring realization of the construction project of an oil refinery underway with the loan agreement between the government of Mongolia and the Exim Bank of India within its scheduled date, intensify the project implementation, define the Mongolian government’s support to the project and create the legal framework.

The bill was co-developed by the Ministries of Justice and Home Affairs, Finance and Mining and Heavy Industry, Mineral Resources and Petroleum Authority and Mongolian Oil Refinery state owned company.

The approved law creates legal foundation for actions and activities related to the oil refinery under construction in Dornogobi aimag as well as its facilities and infrastructures, including the usage of international norms, standards and regulations, control, facilitation and approval of the oil refinery’s blueprint and designs and commissioning of the factory and the establishment of a product sharing agreement on the oil field and ensuring of stable supply of raw products, reports the Ministry of Mining and Heavy Industry.

Ulaanbaatar /MONTSAME/. Bogd Bank, the youngest bank in Mongolia’s banking industry, has announced that it would launch an initial public offering and list 20 percent of its shares on the Mongolian Stock Exchange to raise funds from public.

In compliance with recent amendments to the Banking Law of Mongolia, approved on January 28, 2021, which obliges some commercial banks to become available for public trading prior to June 30, 2022, and all commercial banks to reduce its ownership concentration before December 31, 2023, the Bogd Bank now becomes the first bank to trade its shares on the stock exchange and transition from private to public.

Established in 2014, the Bogd Bank is owned by Bodi Capital LLC (91,32 percent) and Bogd Capital Investment (8.68 percent). Saruul Ganbaatar, CEO and Board Director at the Bogd Bank, said “The stock market launch of the Bogd Bank is expected to bring about increased transparency and improve the corporate governance of the bank, enabling the bank to fulfill its goal to grow into the best bank in the modern era.”

The total assets held by the Bogd Bank, which has more than 45,000 customers, were increased by around 5 times, from MNT 44.2 billion in 2015 up to MNT 248.8 billion in 2019, and its net operating profit was estimated at MNT 2.9 billion as of 2019.

Ard Securities LLC, a subsidiary of Ard Financial Group - a diversified financial services holding company, will serve as a primary underwriter to lead the Bogd Bank’s IPO process. With 23-year of history in the banking industry by holding broker, dealer, underwriter, investment consultant and forex trade licenses, Ard Securities offers variety of services including securities trading, monitoring of portfolio performance and trading activities, etc.