The European Bank for Reconstruction and Development (EBRD) and the Bank of Mongolia (BOM) have agreed to set up a long-term dollar-togrog swap facility to increase the availability of Mongolian togrog (MNT) financing to local businesses affected by the coronavirus pandemic.

The swap facility is a result of joint efforts by the EBRD and BOM to improve the competitiveness and resilience of Mongolian companies, with a strong focus on small and medium-sized enterprises (SMEs), which employ over 40 per cent of the country’s population.

The swap will enable the EBRD to secure reliable access to MNT liquidity and provide local currency loans both directly and through domestic financial intermediaries to companies in such sectors as agribusiness, building materials, light manufacturing and services. The funds will be used to support their liquidity, short-term working capital and trade finance needs, while limiting currency exchange related risks.

The EBRD was the first international financial institution to adopt emergency measures to address the economic impact of the coronavirus pandemic in March last year. It focused on supporting existing clients by providing short-term liquidity and working capital to protect viable companies and safeguard progress towards sustainable, fair and open market economies.

In 2020 in Mongolia the EBRD channelled over €150 million into projects ranging from key infrastructure developments to support of local small businesses through financial intermediaries.

The Bank has invested more than €1.8 billion in 113 projects in the country since it started operations there in 2006.

Foreign direct investment (FDI) in China hit a record $144.37 billion in 2020, as the world’s second-largest economy keeps on recovering from the Covid-19 pandemic, according to China’s Ministry of Commerce.

The latest data released by the ministry shows that FDI saw a 4.5-percent year-on-year growth in dollar terms, and a 6.2-percent increase when expressed in yuan.

Foreign inflows into the country’s service industry advanced 13.9 percent year on year, totaling $112 billion and accounting for nearly 80 percent of the entire FDI portfolio. Meanwhile, foreign investment in the advanced-technology industry expanded by 11.4 percent year on year, and high-tech service sector investments rose by 28.5 percent.

The ministry stressed that the latest figures show China has managed to emerge from Covid-19 and meet its target of stabilizing foreign investment in 2020, bucking the downward trend in global foreign investment.

Foreign investments from the top-15 FDI countries and regions grew by 6.4 percent, and took 98 percent of the total FDI to the Chinese mainland. Financial inflows from the Netherlands and the UK advanced 47.6 percent and 30.7 percent respectively. At the same time, investments by the Association of Southeast Asian Nations increased by 0.7 percent.

The social and economic devastation of the coronavirus pandemic helped win Joe Biden the White House - and his first months in office will be devoted to tackling it.

He has called for $1.9tn in immediate pandemic relief, and promised a second round of stimulus focused on investments in infrastructure, research and development and climate-friendly initiatives to jumpstart the economy.

The country remains sharply divided, but Mr Biden's party has control of the House and this month won a narrow majority in the Senate as well, giving him more room than many expected to push his agenda.

So what will he try to do?

1. Press for more Covid-19 spending

Since winning the election in November, Mr Biden has put promises of additional pandemic relief front and centre of his plans.

Last week, Mr Biden said his $1.9tn (£1.4tn) "American Rescue Plan" would include $1,400 stimulus cheques and $350bn in state and local aid.

His proposal would also expand and extend jobless benefits and put $70bn toward coronavirus testing and vaccine distribution.

"It's not hard to see we're in the middle of a once-in-several-generations economic crisis," Mr Biden said. "The crisis of deep human suffering is in plain sight and there's no time to waste. We have to act and we have to act now."

"This gets money quickly into the pockets of millions of Americans, who will spend it quickly," he added. "That helps the whole economy."

There is little doubt that Republicans will fight the plans. But some Wall Street analysts, such as those at Goldman Sachs, are already pencilling in $750bn more in relief on the expectation that Mr Biden will get something through eventually.

"That, at least, should be easier to do," said Chris Low, chief economist at FHN Financial.

2. Call for raising the minimum wage - and taxes

Mr Biden has called for a $15 minimum wage and said he planned to pay for investments by ensuring corporations and those at the top paid their "fair share".

He has backed raising taxes on the richest households and partially reversing tax cuts granted to companies during the Trump administration, when top rates dropped from 35% to 21%.

"It's the right thing for our economy," he said. "It's the fair thing and it's the decent thing to do."

Even with Democratic majorities, however, it's not clear that idea will become reality anytime soon, since getting such moves through would likely require some Republican support.

Wall Street analysts, at least, are betting that higher taxes are off the table for now.

But Jason Furman, a professor at Harvard Kennedy School and economic adviser under former President Barack Obama, said he thought some rises remain possible.

"President Biden will only be able to get a fraction of what he's called for, because he can't do any more than what the most moderate Democratic senator wants," he said. "I think he'll get some tax increases on high-income households and corporations, but not a huge amount."

3. Seek trillions in climate-friendly infrastructure spending

Mr Biden plans to push pandemic relief first, followed by a second package, which would include the tax hikes as well as massive spending for investments in infrastructure, research and other priorities, with an emphasis on climate-friendly items like charging stations for electric vehicles.

"Imagine confronting the climate crisis with American jobs and ingenuity leading the world," he said. "It's time to stop talking about infrastructure and finally start building infrastructure so we can be more competitive.

Infrastructure investing is an idea with plenty of support from business groups and one that in theory could unite conservatives and liberals.

But getting Congress on board for sizeable public works spending might prove easier said than done.

After all, Donald Trump touted infrastructure plans too - promises that became a running joke in Washington as they repeatedly failed to progress. And many climate-friendly policies remain controversial among companies and Republicans, who have already started criticising Mr Biden's agenda and raising concerns about its cost.

"This opens up more scope but it's still an exceedingly slim majority," Prof Furman said. "You won't be able to do everything."

4. Order change on immigration and the environment

Mr Biden won't need to depend on Congress for everything - and he's likely to focus his executive power on issues like immigration and the environment, two areas where the corporate world often split from the Trump administration.

He has promised to quickly reverse Trump actions, including by rejoining the Paris Climate Accord and ending travel bans from several Muslim-majority countries

He's also got power to influence policy via appointees, new rules governing issues like pollution, and Washington's spending might, which he has pledged to use to supercharge demand for electric vehicles.

5. Do, well, something, on student debt

It's not clear how far Mr Biden will go when it comes to using his White House power.

Democratic leaders like Senators Elizabeth Warren and Chuck Schumer have pushed him to sign executive orders wiping out up to $50,000 in student debts owed to the federal government.

Mr Biden has so far rebuffed calls to unilaterally cancel such debts, sticking with the stance he took during his election campaign, when he backed legislative proposals to forgive up to $10,000 in federal student loans.

"The first couple of years the Biden administration is going to find itself spending a lot of time trying to establish what the correct policy position is because they are not in agreement," said economist Pippa Malmgren, who served in the White House of former President George W Bush. "The left is divided, just not as sharply as the right is."

Ulaanbaatar /MONTSAME/. On the evening of January 19, 2021, a live streaming news video showed a woman who gave birth a day before and her newborn baby being transferred from the Urgoo Maternity Hospital to the National Center for Communicable Diseases (NCCD) without any warm outerwear and footwear in cold weather temperature, causing widespread public criticism. She was diagnosed to have COVID-19 earlier that day and was transferred to the NCCD with her baby for quarantine.

On the morning of January 20, 2021, today, officials from the National Center for Communicable Diseases and Urgoo Maternity Hospital issued official apology to the mother, the newborn baby and their family. Currently, the mother and the baby are staying at the quarantine facility of the NCCD under treatment together with the father who was also tested positive for the coronavirus and all are in stable health condition, report the NCCD officials.

However, citizens have assembled in a peaceful protest at the central square in Ulaanbaatar since the morning of January 20, condemning the government for the action and demanding resignation of State Emergency Commission, responsible for the COVID-19 emergency management, and to hold those responsible for the wrongdoing accountable.

As a result, Prime Minister U.Khurelsukh convened an emergency meeting, after which, Deputy Prime Minister Ya.Sodbaatar, who also serves as Chair of the State Emergency Commission, and Minister of Health T.Munkhsaikhan announced that they are submitting their resignation to the Prime Minister. Both ministers were appointed to the position in August 2020 after the new government was formed as a result of the parliamentary elections.

Deputy Prime Minister Ya.Sodbaatar said “Despite the fact that it was not my immediate responsibility, I regret that such neglectful people lacking compassion are working for the Mongolian state. I apologize to the Prime Minister, who appointed me to this position, and the people of Mongolia.”

“I wish to highlight that our team has not made any big strategic mistakes in the past and Mongolia is named as one of five countries who are successfully fighting against the pandemic. I thank for all frontline healthcare workers, professional inspection, police, emergency management organizations, and the government and State Great Khural of Mongolia for the cooperation.”

Afterwards, Health Minister T.Munkhsaikhan said “We have been striving in our battle against COVID-19 and are managing to overcome the transmission outbreaks with minimum losses. All efforts were made to correct the wrong healthcare system persistent for many years and certain achievements have been reached, as you may see. The irresponsible action of some people must not be the reason to deny the efforts committed by around 57,000 employees in the health sector” and notified to convey his resignation to the Prime Minister.

Mongolia’s law on government states that the Prime Minister chooses to resign members of the government after presenting the resignation to State Great Hural and the President. In line with the legislation, the Prime Minister will make the final decision, as reported by the Cabinet Secretariat Press Office.

Jan. 20 (Xinhua) -- Mongolia has set June 9 as the date for its next presidential election, the parliament's press office announced Wednesday in a statement.

The resolution to set June 9, 2021 as the election date was approved by the country's parliament, or the State Great Khural, on Wednesday, the statement said. Enditem

Mongolian National Olympic Committee (MNOC) President Naidan Tuvshinbayar provided an update on the country’s planning for upcoming Olympic Games to President Khaltmaagiin Battulga.

Tuvshinbayar attended a meeting with Mongolia’s head of state at the Presidential Palace.

The meeting saw the MNOC President outline the status of Mongolia’s planning for the delayed Tokyo 2020 Olympic Games.

Mongolia currently have 11 qualified athletes for the Games in Japan’s capital.

Athletes have qualified in archery, boxing, shooting, swimming and wrestling to date.

Mongolia’s women’s 3x3 basketball team has also qualified for Tokyo 2020, where the discipline is set to make its Olympic debut.

Tuvshinbayar also presented an update on Mongolia’s plans for the Beijing 2022 Winter Olympic and Paralympic Games.

Mongolian President Battulga reportedly vowed to ensure strong support to athletes and coaches through training opportunities, which would allow more Olympic quotas to be achieved.

Battulga is the current President of the Mongolian Judo Federation and was crowned world sambo champion in 1982.

Tuvshinbayar, a Beijing 2008 Olympic judo champion was joined by International Olympic Committee member Battushig Batbold and Enkhbatyn Badar-Uugan, an Olympic boxing gold medallist at Beijing 2008.

Mongolia has earned two gold, 10 silver and 14 bronze medals at the Olympic Games since debuting at Tokyo 1964.

Jan. 20 (Xinhua) -- Nearly two-thirds of COVID-19 patients in Mongolia have now recovered, the country's National Center for Communicable Diseases (NCCD) said Wednesday.

Thirty-nine more COVID-19 patients recovered and were discharged from hospitals in Mongolia's capital Ulan Bator, taking the total recoveries to 1,033, Amarjargal Ambaselmaa, head of the surveillance department of the NCCD, said during a daily press conference.

Meanwhile, 32 new cases were detected in Ulan Bator in the last 24 hours after 13,318 tests for the novel coronavirus had been conducted across the country, raising the tally to 1,568, said Ambaselmaa.

The Asian country has recorded two COVID-19-related deaths since it confirmed its first case of COVID-19 in March. Enditem

Ulaanbaatar /MONTSAME/. We interviewed D.Bayarkhuu, professor of international relations to share his views on the current state and future tendency on Mongolia’s foreign relations, specifically its relations with the neighboring countries and the U.S, in connection with the presidential inauguration of Joe Biden in a few days.

-How do you evaluate Mongolia's foreign policy in 2020, and how do you envision foreign policy trends for this year?

Although the world has been hit hard by the COVID-19 pandemic and countries narrowed their foreign relations, Mongolia has continued to pursue its multi-based, peace-loving and active foreign policy. It has also shown during the pandemic that foreign relations do not stop in the online world. Foreign relations activities, such as international conferences, bilateral and multilateral consultations, etc. are being organized virtually. 2020 was a year full of major events in Mongolian politics. For instance, the parliamentary election was held and the cabinet was newly formed, which have not made change or adjustments to the foreign policy of our country. There were neither halts nor hinders in Mongolia’s foreign relations. Therefore, I personally find that the foreign policy and relations were realized effectively in 2020.

As for 2021, the fight against the COVID-19 pandemic will continue. Even though the foreign relations will be limited in certain extent due to the new challenges arose as a result of the pandemic, I am optimistic that it will not be slowed down. The activities such as diplomatic visits, foreign cooperation and foreign trade will continue but in limited conditions.

-Currently, it seems as if the period can be divided into three categories: pre-COVID, during COVID, and post-COVID. How will the continued uncertainty, caused by the pandemic, change Mongolia?

According to foreign researchers, this pandemic has a tendency to be with us for another 3-4 years. It means that the restrictions and lockdowns will be imposed constantly and will have impacts on the development and foreign relations of our country. However, we need to look ahead and fulfil the goals without compromising.

Our two neighbors, the region, as well as our third neighbors and the world community, are all pursuing policies in line with the current situation. It is considered to be the greatest challenge facing mankind since World War II. To that extent, our external environment will change. It would be right for us to be ready for it, to adapt quickly to the new situation, and to try to turn it in our favor.

-How do you see the relations between our two neighbors - China and Russia? How do the relations of these great powers affect Mongolia?

Relations between our two neighboring countries are at their best. The political relations of them have been strengthened with full confidence as well as trade and economic relations and cooperation in other sectors have developed rapidly. To that extent, a beneficial opportunity has been opened up for our country. A favorable political condition has been created for the establishment of the economic corridors and further development of economic cooperation between the three countries. Now it is important to realize it and work together for mutual benefits. Unfortunately, the pandemic has affected negatively to make progress on this matter. Preparing our economy for the economic corridor cooperation should be intensified.

-How do the relations of the two neighbors with the United States affect Mongolia?

Mongolia pursues the third neighbor policy that builds relations with countries other than our neighbors. We see some conflicts in the relations of our two neighbors with the U.S. and Mongolia maintains its ‘neutral’ status. There is no denying the possibilities that the two neighbors have concerns that Mongolia-U.S. relations could be detrimental to them, or that Mongolia could be used in U.S. policy against them. In contrast, we should also emphasize the fact that our neighbors have trusted and respected our multi-based and peace-loving foreign policy. Not taking sides is the foreign policy that Mongolia has pursued for a long time.

Joe Biden will soon be sworn in as the President of the United States. How will Mongolia-U.S relations change after this event? Especially in terms of economic cooperation.

It is too early to tell. The U.S foreign policy is likely to continue without deviating from its basic principles. I am confident that Mongolian-U.S. relations will make progress. The resolution reaffirming the strategic partnership between the United States and Mongolia was adopted by the House of Representatives of the U.S. congress in the fall of 2020. Moreover, the process of the discussing the draft law on Third Neighbor Trade Act submitted to the U.S. Congress is likely to be completed soon. Therefore, it can be considered as a new beginning of economic cooperation between the two countries.

Let's get back to Mongolia-China relations. It is believed that the relations between the two countries during the COVID-19 period, especially the initiative of the President of Mongolia, contributed to the development of mutual understanding between the citizens of the two countries. What’s your comment on this?

First of all, I would like to emphasize the fact that our president Kh.Battulga became the first foreign head of state to pay an official visit to China since the outbreak of the COVID-19 pandemic. During his visit, President Kh.Battulga touched upon the donation campaign titled ‘Emotional Support to Eternal Neighbor’ that was launched by the Government of Mongolia, the voluntary donations made by the Mongolian people and entities to the Chinese side, and the donation of 30 thousand sheep by the people of Mongolia within the scope of the visit, saying that these contributions will be measured in the depth of its significance in bilateral ties, rather than in their size. It is also noteworthy that many people were making comments to thank to Mongolia, and Chinese televisions highlighted this as a truly wonderful event.

-Most of the world's economic growth slowed down due to the pandemic. According to the recent study, only China’s economy has shown a normal growth. As for Mongolia, all economic indicators have shown a decrease. What should be done to increase benefits of economic cooperation with China, this neighbor of ours?

Of course, the economic growth decreases more or less since it is a global pandemic. In fact, I am critical of the fact that we have underutilized China's enormous potential (infinitely large market, buyers, diversified and fast-paced economy). Mongolia exports only raw coal, gold, copper, leather, cashmere, etc. to China.

We lack processing plants that produces value-added products using raw materials from surface and underground resources with advanced technology. Having these types of processing plants will allow Mongolia’s export products to be expensive.

In his speech in 2018, Chinese President Xi Jinping used a slogan "China does not want to develop alone, but wants to develop together with its neighbors”. Therefore, whether the economic cooperation between the two countries will be beneficial for Mongolia depends only on Mongolians.

Ulaanbaatar /MONTSAME/ Mongolia is ranked 101st out of 138 countries, considered for annual Global Firepower (GFP) review. Mongolia holds PowerIndex score of 2.4265.

USA has been named as the country with the highest military power, being followed by Russia and China.

The finalized Global Firepower ranking utilizes over 50 individual factors to determine a given nation's PowerIndex score with categories ranging from military might and financials to logistical capability and geography.

Global FirePower

Despite the current issues regarding the Oyu Tolgoi copper-gold mine and mining project between the Mongolian Government and Rio Tinto, which manages the operation, the mine continues to run very successfully both in terms of current open pit production and the ongoing underground project expansion, despite COVID-19 challenges. Oyu Tolgoi LLC is jointly owned by the government of Mongolia, which has 34% ownership, and Turquoise Hill Resources, which owns 66%. Rio Tinto owns 50.8% of Turquoise Hill Resources and manages the operation on behalf of the owners.

As an example in the concentrator, the main annual scheduled shutdown finished on January 1, and was completed by 100% Mongolian staff without any safety issues. In all, 447 people completed 1,270 tasks for a 12 day total of 33,400 man hours. The project has deployed a number of mitigations that include extended on-site rosters, securing commitments from critical vendors to remain on site for extended periods and layered screening of personnel. Oyu Tolgoi LLC recently stated: “All of Oyu Tolgoi’s achievements are the result of the hard work and dedication of our employees. We wouldn’t be able to build a mine that can compete with the best in the world without the young people who are carrying the giant construction on their backs in difficult conditions.”

Rio Tinto is also deploying equpiment in the wider country to help combat the pandemic. On January 16, the first batch of PCR equipment arrived in Ulaanbaatar, as part of 4 PCR labs funded by a $602,000 voluntary commitment from Rio Tinto.

In its Q4 2020 operations review, Rio Tinto said mined copper production from the open pit was 2% higher than in 2019, reflective of the anticipated move to higher grade areas of the open pit, primarily due to accelerated mine development and production phasing. In the fourth quarter, pit phasing delivered higher gold production (+139%) compared to the prior quarter. Access to higher copper and gold grades is expected to continue throughout 2021. “We maintained shipments across the Chinese border despite COVID-19 measures in Mongolia. We continue to work closely with authorities to manage the risk of supply chain disruptions due to COVID-19.”

On to underground mine progress, and Rio Tinto says overall underground lateral development has now reached 53,000 equivalent metres (eqm), with development for first drawbell substantially complete. The project has now exceeded one million tonnes of material moved through Shaft 2 since commissioning and scheduled annual maintenance of the shaft was successfully completed in October 2020 using remote technology.

Shaft 4 is now out of care and maintenance and the focus is on completing all construction and commissioning activities for load testing and verification, and for sinking to commence in early 2021. Shaft 3 remains on care and maintenance, with some minor construction.

On 16 December, Rio Tinto confirmed the definitive estimate of cost and schedule for Panel 0 with sustainable production expected to commence in October 2022 and development capital of $6.75 billion, in line with previously announced ranges. These estimates include the known impacts of COVID-19. At peak production, Oyu Tolgoi is expected to operate in the first quartile of the copper cash cost curve and by 2030 is expected to be the fourth largest copper mine in the world. It is expected to produce 480,000 t of copper per year on average, from 2028 to 2036, from the open pit and underground. The underground Ore Reserve has an average copper grade of 1.52%, which is more than three times higher than the open pit Ore Reserve, and contains 0.31 grammes of gold per tonne.

Back to the outstanding high level issues, on 4 January 2021, the Government of Mongolia advised Rio Tinto that they were dissatisfied with the results of the definitive estimate and the funding implications for the sharing of economic benefits between the shareholders of Oyu Tolgoi. Rio Tinto states: “The Government has also stressed the importance of achieving a comprehensive solution which addresses the social issues of importance to Mongolia, such as water usage and the corporate tax payments which have been referred to International Arbitration. We have been engaging with the Government and Turquoise Hill Resources (TRQ) to address these recent challenges within the scope of Parliament Resolution 92, and remain open to improving the Underground Development and Financing Plan (UDP) to deliver even greater benefits from Oyu Tolgoi to all stakeholders.”

Rio Tinto added that additional milestones need to be met in order to ensure that the project can commence caving operations in 2021, including: outstanding government approvals – including registering the updated Resources and Reserves submitted in February 2020 and accepting the updated feasibility study (OTFS20) completed in July 2020 in accordance with the 2009 Investment Agreement and Mongolian regulation; funding as agreed with TRQ in the MOU in September 2020; and, achieving the power milestones agreed with the Government of Mongolia in June 2020. “We continue to work closely with our partners, the Government of Mongolia and TRQ in the coming months to finalise these milestones.”