Japan to give JPY 1.2 billion to Mongolia as non-refundable aid www.montsame.mn

Ulaanbaatar /MONTSAME/. Amid COVID-19 global pandemic, the Government of Japan has decided to provide JPY 1 billion as part of the non-refundable assistance to promote economic and social development, and another JPY 249 million as nonrefundable aid to carry out human resources development program to the Government of Mongolia.

Mongolia’s population totals 3,296,866, latest census shows www.montsame.mn

The cabinet irregular meeting convened June 12, heard the results of the 2020 nationwide population and housing census.

Mongolia Livestock Commercialization Project kicks off www.montsame.mn

On June 12, Government of Mongolia, with support from the World Bank, kicked off the Livestock Commercialization project to improve the health and productivity of livestock and increase value of products by commercializing targeted value chains.

The Food and Agriculture Organization of the United Nations will provide technical support towards building human, technical and institutional capacity in support of strengthening animal health systems in the country.

In presence of Mr. Andrei Mikhnev, World Bank’s Country Manager for Mongolia, Mr. Vinod Ahuja, FAO Representative in Mongolia and Ch. Ulaan, the Minister of Food, Agriculture and Light Industry signed a sub-agreement today that aims to strengthen animal health and food safety systems in Mongolia.

As part of this agreement, FAO will work closely with the project implementation unit to strengthen Mongolian national veterinary services in line with international standards and improve the quality and safety of animal products along the value chain through improved management of animal health.

Mr. Ulaan.Ch, Minister of Food, Agriculture and Light Industry expressed his appreciation by highlighting that “This will be a significant project that will contribute to the long-term vision of improving and diversifying economy, with increased export of livestock product opportunities. Longstanding technical support from FAO in the sector has proven to be successful and we are happy to be partnering with FAO and WB in this new endeavour.

“Mongolian agriculture and livestock sectors have huge potential as a driver for economic diversification and as a key source of broad-based employment. As the economic shocks caused by COVID-19 are likely to increase poverty and threaten the food security, the project’s importance is even more relevant now,” – said Andrei Mikhnev, World Bank Country Manager for Mongolia.

“This is truly an ambitious project and we are pleased to be partnering with the Government of Mongolia and the World Bank. I thank the Government and the World Bank for their trust. As a global knowledge organization and a technical leader in the field of animal health, we are committed to bring the best expertise and practices to Mongolia”, said Mr. Vinod Ahuja, FAO Representative in Mongolia

Livestock is a true lifeline for the people of Mongolia contributing to some 80 percent of the total agricultural production, almost 13 percent of the GDP and representing an invaluable cultural heritage. Yet, the livestock sector also faces the sustainability challenge due to climate change, livestock overstocking and depleting natural resources that threaten this lifeline.

FAO’s support will focus on strengthening capacity of the institutions involved in the delivery of animal health services, including related policy and legislation, upgrading veterinary and food safety laboratories to enable animal health related diagnostic services and accreditation and promote digital innovations in support animal health and traceability together with an integrated animal health information system. All these activities will also strengthen the resilience of Mongolia’s livestock system against adverse climate change events and ultimately help preserve Mongolia’s livestock as lifeline for future generations.

FAO Representative Office in Mongolia

Non-performing loans in banking system amounted to MNT 1.9 trillion www.montsame.mn

At the end of May 2020, the total amount of outstanding loan to entities and individuals amounted to MNT 17.2 trillion, increased by MNT 16.6 billion (0.1%) from the previous month, but decreased by MNT 795.6 billion (4.4%) compared to the same period of the previous year. Of the total outstanding loans, 51.2 percent or MNT 8.8 trillion were individual loans.

Mongolia’s unemployment rate increases by 10.6 percent www.news.mn

Applications for Mongolian unemployment benefits have increased due to the pandemic closures. The number of registered jobless people increased by 10.6 percent in January-May, 2020 compared to same period last year. In addition, the number of active job seekers increased by 4.5 percent and number of employed fell by 0.2 percent in the first five months of 2020.

Mongolian drug smuglling diplomats sentenced to 11 years in prison www.news.mn

It was the most spectacular drug discovery of the past year. Germany Customs and the Federal Police stopped the Mongolian Vice Consul Batushig B. (40) and his chauffeur Sosorbaram E. (48) on the A 17 in the diplomatic Mercedes on 3 May 2019.

Banks finalize requests of deferring mortgage loan of MNT 500 billion repayment www.zgm.mn

According to the Governor of the Bank of Mongolia (BoM) Lhavgasuren Byadran, the commercial banks have decided to postpone the repayment of mortgage loans worth about MNT 500 billion.The banks have also restructured more than 37,000 loans that have been encountered difficulty to repay due to the new strain of COVID-19 outbreak. The BoM emphasized that commercial banks have the opportunity to finance mortgage loans from their own resources to the extent of financing provided by the central bank. BoM and commercial banks will provide MNT 25 billion each, or a total of MNT 50 billion, for mortgage loans in May. In the remaining months of this year, the central bank will provide MNT 20-25 billion in mortgage loans every month. In line with the central bank’s order, commercial banks are required to limit the amount of funding provided by the Bank of Mongolia by MNT 100 million, to provide at least 25 percent of the total funding to individuals buying apartments in rural areas, and to finance only new loans.

Mining industry recovery may bolster Australia’s economy again www.mining.com

Australia’s resource industry is set to aid the economic recovery once again as higher prices and expansion plans assist the nation emerging from its coronavirus lockdown.

Mining accounts for nearly 6% of gross domestic product but plays an outsized role in national income, delivering dividends to pension funds and funds for government coffers. Iron ore, the nation’s biggest export, has broken $100 a ton amid off-shore supply concerns, providing a timely budget boost.

“After declining for several years, mining capex is poised to lift over 2H 2020 and beyond. The precursors for a pickup in investment, such as higher prices and elevated levels of exploration expenditure, remain in place, and could see investment lift beyond replacement levels over coming years.”

James McIntyre, economist
The government’s most recent budget numbers from December were based on iron ore falling to $55 a ton, excluding freight, by the June quarter of 2020. The government gains around A$3.7 billion for every $10 in excess of this estimate in the year to June 2021, which will assist the budget position following the massive fiscal injection.

In 2009, Australia dodged recession and rocketed into recovery as China dropped more than $500 billion of stimulus into its own economy spurring a mining investment boom Down Under. China’s stimulus package is much smaller this time — and Australia is already in recession — but the path ahead could prove similar.

Strained relations
While, the Australia-China relationship is in stormy waters following Prime Minister Scott Morrison’s calls for an independent probe into the origins of the coronavirus, key bulk commodities have been insulated from the spat because of the dearth of high-quality suppliers elsewhere.

China has fired warning shots at Australia with tariffs on barley and the suspension of shipments from some abattoirs. Tensions escalated Friday when China’s Ministry of Culture and Tourism published a statement on its website saying that Chinese tourists to be on alert for their safety and not travel to Australia.

Andrew Ticehurst, a rates strategist at Nomura Holdings Inc., is worried that the tensions could limit the upside.

“It won’t be as strong as 2009 when there was a pipeline of projects, but it’s a positive when you put together mining investment, the terms of trade and our exposure to China.”

Shane Oliver, chief economist at AMP Capital Investors Ltd.
“Iron ore is a genuine bright-spot for Australia,” he said. “However, given the deterioration in Australia-China trade relationship, China may not wish to be seen as ‘rewarding’ Australia too much, and higher iron ore imports could be offset by reduced imports of other commodities, goods and services.”

Further assisting domestic iron ore producers, Australia’s key rival, Brazil, has been forced to close mine sites as the nation battles Covid-19.

Rio Tinto Group, the world’s No. 2 miner, in November lifted planned spending on new iron ore mines in Australia to $4 billion, while BHP Group and Fortescue Metals Group Ltd. are both investing more than $3 billion apiece in their own developments. The mines are largely aimed at replacing retiring facilities to sustain exports, though will offer options to boost shipments.

Coal and gold producers are also spending money on new projects in Australia and exploration budgets are rising. Australian gold miners — on track to become the top producer — are resuming a pandemic-disrupted exploration spree amid surging prices.

(By Michael Heath, with assistance from David Stringer)

Fears of second virus outbreak hit global shares www.bbc.com

Financial markets have tumbled amid fears that an uptick in coronavirus cases will hurt the economic recovery.

The Hu to give online concert to help Mongolia fight COVID-19 www.montsame.mn

Mongolian Hunnu rock band ‘The Hu’ will hold an online fundraising concert on June 23 at White Rock Center to support the State Emergency Commission of Mongolia in the fight against COVID-19 pandemic.