Prime Minister checks progress of railway, energy projects www.montsame.mn

Ulaanbaatar /MONTSAME/. Between September 3 and 4, Prime Minister of Mongolia U.Khurelsukh paid a working trip to rural areas to check on the progress of large scale development projects of railway and energy industry in Dornogobi and Umnugobi aimags.

At a regular meeting held on September 9, Chair of the Cabinet Secretariat L.Oyun-Erdene presented about the Premier’s working trip to cabinet members. After the presentation, following orders were given to corresponding ministers, agency chairs and local governors.

- To develop a general plan on the Tavantolgoi coal mine surface facilities in line with the development plan on the industry, infrastructure and urban planning based on the same mine.
- To present about the construction, investment and funding of the Tavantolgoi-Zuunbayar railway as well as about issues concerning the establishment of a special purpose company in this regard, its share ownership and required financing to complete the railroad to a cabinet discussion.
- Take necessary measures on building a power plant for energy supply to the mining projects in the southern region
- Develop an economic and legal feasibility on the proper consumption and possibilities of the surface and underground water sources for development projects in the Southern Gobi while maintaining ecological balance and submit the studies to the cabinet meeting
- To conduct inspection on the investment, financing and spending of development projects funded by Erdenes Tavantolgoi JSC.

Sainshand-Baruun-Urt railroad
MNT 1.1 billion is required for building 846 km road in routes Sainshand-Baruun-Urt, Baruun-urt-Khoot-Choibalsan, Khuut-Bichigt. Preparations are underway for the construction of the road, a part of the vertical road network to connect Mongolia and China.

Oil refinery
Within the oil refinery project, a town with 549-apartment complex, offices, service centers, on-site cafeteria for employees, school and kindergarten has been under construction since 2019. Oil refinery is expected to be commissioned in summer of 2024.

414.6 km Tavantolgoi-Zuunbayar railroad
A total 94 entities and 6,000 engineers and technical employees are on-duty at the construction site and 2,900 equipment and machinery are being utilized. Launched in May 2019, the construction project for 414.6-km railway connecting Zuunbayan with Tavantolgoi is in full swing. Earthworks of the railway construction are ongoing with 99 percent completion, pipeline construction with 97 percent and other types of civil works, including dams are completed 84 percent. The 54 km upper track structure construction is being done by Ulaanbaatar Railways JSC, and remaining 15.8 km is being built by the General Staff of the Mongolian Armed Forces. Construction of 2,500-meter-long bridges to be installed at 27 different locations is running with 73 percent completion and energy transmission line construction is about 60 percent complete. The Ulaanbaatar Railways Company is planning to complete the upper track structure construction within November 30 this year.

240 km Tavantolgoi-Gashuunsukhait railroad
With the establishment of the Tavantolgoi-Ganshuunshukhait railroad, the annual railroad transportation capacity is expected to be 30 million tons, which will cost four times less than annual costs of auto road transportation. Lower track structure construction of the railroad is completed at 95 percent while 32 percent of the upper track structure construction is done. 73 km out of the 240 km railroad have been already built.

Transporters’ town
A transporters’ town has been under development in Tsogttsegtsii soum of Umnugobi aimag since July 2018 with a view to tackle issues faced by drivers of coal hauling trucks, such as long-queue and disorder at the Tavantolgoi coal mine. A complex town with a parking garage for 1,000 trucks, a facility to provide amenity and food services to 500 people at the same time, a loading area, fuel station, service station and truck shop are being built in the ‘Transporters’ Town’.

‘Peaceful parking lot’ complex
A parking space for trucks has been under construction since September 2018. It will enable safe and secure parking of trucks and provide all necessary services to cater for the social well-being of over 14,000 drivers, who operate heavy trucks to transport coal between Tavantolgoi mine site and Gashuunsukhait border port. The parking space will hold a capacity to receive 2,500 heavy duty trucks at the same time and will be equipped with complete surveillance and lighting systems. All types of essential services will be provided at the ‘Peaceful parking space’ complex including hospitals, pharmacy, hotels, shower and food manufacturing shops, cafeterias and government services will be available at the complex. The complex construction is set to finish by the end of this year.

Nikola & GM challenge Tesla with world’s ‘most badass’ 900-horsepower electric truck www.rt.com

The electric truck startup Nikola and General Motors (GM) announced on Tuesday a strategic partnership to produce an electric pickup truck dubbed the ‘Badger’. It will use GM’s widely acclaimed Ultium battery technology.
Under the deal, GM will get 11 percent ownership in Nikola, which will produce the electric pickup truck by the end of 2022. GM also gets the right to nominate one board member in exchange for in-kind services. The automaker will supply Nikola’s fuel cells globally, except Europe, for its class 7/8 truck.

China Detains 23 in Crackdown on Inner Mongolia Protests www.time.com

(TAIPEI, Taiwan) — Police in China’s Inner Mongolia region have detained at least 23 people following protests last week against a new policy that replaces Mongolian-language textbooks with Chinese ones in classrooms.

The push to use the new textbooks, which started in other ethnic minority regions such as Xinjiang and Tibet in 2017, has prompted demonstrations and school boycotts by ethnic Mongolians in at least five cities and counties in Inner Mongolia.

The 23 detentions were across eight banners, the regional word for counties, according to an Associated Press tally of nine local police reports over the past several days. The reasons range from “organizing and collecting signatures for a petition” to “picking quarrels and stirring up trouble.”

Others were for “flagrantly insulting a deceased former leader of the country” and “sharing videos in a WeChat group to obstruct the implementation of the national textbooks policy.” WeChat is a popular messaging app in China.

The local government is also exerting pressure in other ways. Authorities in Zhenglan banner announced Saturday that they had suspended two members of the ruling Communist Party without pay for failing to carry out the policy.

Police in Chifeng city said Monday they handed over Communist Party members, including two elementary school teachers, to a local party disciplinary committee for investigation.

Information about the situation has become harder to get, said Enghebatu Togochog, the U.S.-based director of the Southern Mongolian Human Rights Information Center, an activist group for Mongolian rights.

“Before these things happened, we were able to get relatively accurate information through WeChat groups,” he said. “Now, it’s almost a communication blackout.”

The government has stepped up positive messaging on the policy, under which more classes will be taught in Mandarin Chinese.

“There are still many young people, middle-aged people and herders who cannot use Mandarin for basic communication,” said a Q&A published by the state-backed Inner Mongolia Daily. “This has become an obstacle to lifting individuals out of poverty, impacting local economic and social development, and an important factor limiting the ethnic unity and harmony in our region.”

Local governments have published videos of happy-looking students in class and playing on school grounds, saying that students have returned to school.

Togochog said many people in rural areas are still not sending their children back to school, based on private messages his group has received. But he was unable to say how many.

A high school student who left school with others last week said a teacher had told them to come back to class, and that classmates said their parents had been threatened over their jobs. The AP is withholding the student’s name for safety reasons.

“I have a feeling I may be in trouble soon, the parents of a lot of students have been caught. I spoke out, telling everyone to persist,” the student said on Sunday via a messaging app. “But I’ll be deleting this app. You won’t be hearing from me anymore.”

Mongolia: crafting essential country-specific tools to tackle NCDs www.who.int

Mongolia has one of the highest mortality rates due to noncommunicable diseases (NCDs) across the Western Pacific. Home to over three million people, Mongolia is facing a rising tide of NCDs. In 2018, around six in ten deaths were attributed to either cardiovascular disease (CVD, 34.4%) or cancer (24.6%) in 2018.

Smoking prevalence remains high, with more than four in ten adult men being daily smokers, while trends in child and adult obesity have significantly increased over the last two decades, driven in part by the increasing ubiquity of ultra-processed foods and beverages.

Recognising the critical importance of preventing and managing heart disease to health and development, the Government of Mongolia has approved a national ‘Sustainable Development Vision 2030’, setting a goal to reduce CVD mortality to 17.4 per 10,000 people by the end of 2020.

Primary care is an important entry point to reach this goal. In Mongolia, primary health facilities include family, soum and village health centres, designed to respond to the unique geographic conditions of the country.

However, it is widely recognised that existing resources will need more help to improve heart health. Stronger health system action is needed, but is held back by limited resources. As such, accelerating NCD responses that are community-based, patient-centred, long-term and sustainable is vital.

Fixing these challenges: MongPEN to the rescue
To address the devastating impact of NCDs in Mongolia, in June 2019, the Mongolian Government Ministry of Health, supported by WHO and the Korea Centers for Disease Control and Prevention, launched 'MongPEN'. The name comes from a Mongolian version of WHO’s Package of Essential NCD interventions, commonly known as ‘PEN’. It also features information on improving heart health (from WHO’s ‘HEARTS’ technical package), such as guidance on how to identify patients at high risk of CVD, and making use of an ePrescription service to gather data.

Using MongPEN, the Ministry of Health hopes to strengthen its health system to prevent and manage NCDs, by:

using legislation to tackle risk factors and improve health financing;
improving evidence-based management in primary care; and
strengthening mechanisms for monitoring, surveillance and capacity building.

“I see many benefits of MongPEN in primary health care. First, we have received systematic training on NCD interventions, followed by supportive supervision and refresher training. This has been very empowering.

MongPEN makes our work easier in several ways. It assists with clinical decision-making by providing guidance to conduct risk assessments for cardiovascular disease. It supports us to follow up with our patients with hypertension and diabetes, enabling physicians, nurses and social workers to work as a team. Finally, it empowers both care providers and patients to act on unhealthy lifestyle behaviours.

In short, MongPEN has provided all the necessary tools for us to make a positive change in CVD prevention and management, and to make our community healthier."

Initially piloted in two demonstration sites - Darkhan-uul province, and the Songinokhairkhan district in Ulaanbaatar City - a recent evaluation has found several challenges to using MongPEN more widely. These included a lack of capacity to provide necessary care, inconsistent follow-up that made it hard to understand if conditions were under control, and disparate paper-based health information systems, putting strain on staff and undermining effective data collection.

"In Mongolia, cardiovascular diseases have been the single biggest cause of mortality, accounting for 34.4% of all deaths in 2018. Tertiary health facilities are overwhelmed with heart disease patients, whereas primary health centers lack the capacities - and sometimes simple yet necessary tools - to provide preventive care for conditions like hypertension and diabetes.

With WHO’s full technical support, we launched MongPEN at selected primary health centers in 2019. By implementing this comprehensive package at the primary health care level, we see great potential to reduce morbidity and mortality from cardiovascular diseases, and to strengthen the primary health care system in the country."

First, recognising the need to shift away from paper-based records, to a high-quality way to collect data on NCDs, this project sought to procure a new server for Mongolia’s ePrescription system. While a computer may sound an unusual choice, it is absolutely crucial. Building the capacity to collect electronic data on NCDs not only lays the groundwork for improving Mongolia’s health system, but also aims to gather the best quality information to improve patient care.

Second, responding to the challenge of COVID-19 quickly became an urgent concern. Countries globally have had their NCD services disrupted, with health efforts instead pushed towards tackling the pandemic. To maintain NCD services during the pandemic, funding was used to procure additional reagents for glucose and cholesterol testing, and face masks, allowing those on the NCD frontline to deliver essential services to high-risk patients.

Mrs J Jargal, a resident of 10th khoroo, Songinokhairkhan District in Ulaanbaatar city for over twenty years, explains why discussing NCDs has helped her:

"In previous years, I do not recall if our Family Health Centre was proactively identifying people with high blood pressure and high blood sugar.

One day in January, I received a phone call and my husband and I were invited to have our blood pressure and blood sugar checked. After this check, we were advised to reduce body weight, take control of diet, do regular exercise and avoid smoking and drinking.

Back then, my weight was 92 kilos and my blood pressure was 150/110 mm Hg. After a half year of close consultations with my doctor and exercising at home, I have lost 7 kilograms. As prescribed by the doctor, I have also been taking my medicine and my blood pressure is reduced and well under control. As well as feeling a lot better, I have become friends with my doctor at the Family Health Centre!"

The result: delivering training, information and equipment to strengthen CVD management in the context of COVID-19
In just three months, the Mongolian Government Ministry of Health has made considerable progress towards its two goals.

In a short period of time, investments in a server have helped scale up the ability to collect data on NCDs. It is hoped these tools can be scaled up across Mongolia, including possibilities to create automated processes, allowing patient follow-up to be done automatically, rather than risk being missed when only using paper records.

Alongside this investment, further support was provided for wider dissemination of previously translated technical packages for training and education, enabling better resonance with the local community.

Responding rapidly to the COVID-19 pandemic, the Ministry of Health was able to procure equipment, medical devices and disposable items for 16 health centres. This equipment was supported by continued supervisory visits by the Ministry to demonstration sites.

And while face-to-face staff gatherings cannot happen just yet, a national workshop for training has also been organised for September 2020, building on momentum generated by the investment.

Despite the uncertainties of COVID-19, this work has supported the Mongolian Government Ministry of Health to not only upskill health centres to treat and manage NCDs now, but also provide the building blocks for a revolutionary new way to collect national NCD data. In the midst of a global pandemic, that is one positive to look forward to.

As Dr T. Munkhsaikhan, the current Minister of Health reflects, there are several opportunities to boost the role of NCDs in primary care across the country:

"It is great to see the “MongPEN” initiative has been implemented at 16 family and soum health centers of Darkhan-Uul province and Songinokhairkhan district of Ulaanbaatar city for over a year. It has already been showing its initial results, such as improved hypertension control rate at primary level and reduction in referral of uncomplicated cases of hypertension and diabetes to the secondary level of health care.

I would like to acknowledge the WHO support and collaboration on piloting this important initiative in Mongolia. We will continuously collaborate with WHO and will scale up MongPEN to all primary health centers in the country step by step".

Across the Global Week for Action on NCDs (7-13 September), we are sharing stories from the field about why acting on NCDs is so important. These stories have emerged from a recent project funded by the Government of Denmark. Today's story was written by Dr Warrick Junsuk Kim, Dr Bolormaa Sukhbaatar, Ms Bernice Castro and Mr Daniel Hunt.

China cracks down on ethnic minorities again – this time, in Mongolia and Tibet www.theglobeandmail.com

Even with the world focused on the plight of Uyghurs in Xinjiang, Beijing has continued its efforts to quietly tighten its control over ethnic minorities in two other strategic areas.

At a two-day symposium, Chinese President Xi Jinping called for efforts to build a “modern socialist Tibet” where Buddhism would be “guided in adapting to the socialist context and developed in the Chinese context.”

In Inner Mongolia, meanwhile, Beijing launched a phased program on Sept. 1 to replace Mongolian as the language of instruction in schools with Chinese, triggering protests and class boycotts, including at least one reported suicide.

This is a radical shift from Beijing’s decades-old official policy – and it’s a reminder of what can be lost in Chinese nationalism.

Fifty-five ethnic minorities in China make up less than 10 per cent of China’s total population of 1.4 billion, but these ethnicities account for more than 100 million people who are spread over 60 per cent of the country’s territory, including sensitive border areas. The other 90-plus per cent of China’s population belong to the Han ethnicity. To the world at large, to be Chinese is to be Han.

Thanks to historical ties forged while fighting their ultimately successful civil war against the Nationalist government, the Communist Party of China has largely worked to preserve and develop minority languages and cultures. The Mongols, in particular, were helpful to Mao Zedong’s efforts, and as a reward, an Inner Mongolian Autonomous Region was set up by the Communists in northern China in 1947, two years before the establishment of the People’s Republic of China. Other “autonomous” regions, prefectures and counties for minority peoples were established in later years. In doing so, the state offered such regions privileged treatment, including not being bound by the one-child policy, so their numbers could increase.

But in recent years, the policy has been reversed.

Despite their proud history – ruling China in the 13th and 14th centuries as part of the Mongol empire, which at one time stretched from the Pacific Ocean to the Caspian Sea – their homeland is now divided between the independent country of Mongolia and Inner Mongolia, a Chinese province.

Tibet, which had been independent before Communist troops took over in 1950, is a special problem. Buddhism exercises a strong hold over its people, even 70 years later. Indeed, after Mr. Xi called for Buddhism to be “guided” by socialism, the Tibetan government-in-exile in Dharamsala, India, responded: “For Tibetans, Buddhism is more important than communism. To force them to treat communism as more important than their faith is not only a violation of international religious freedom but is also deeply misguided.”

And so Beijing has begun forcing ethnic minorities to adopt the Chinese language, history and culture as their own, not to mention traditional Han religious beliefs.

Up until the 1980s, five minority languages were used for teaching in “autonomous” areas: Mongolian, Uyghur, Tibetan, Kazakh and Korean. But after China adopted the market economy in the 1980s, employers began preferring native Chinese speakers, prompting many minority parents to enroll their children in mainstream Chinese schools, rather than ethnic schools, so as to widen their career prospects. Now, ethnic schools are being systematically closed. In Xinjiang, this happened in 2017; in Tibet, they were shuttered in 2018. It appears to be the Mongols’ turn, next.

The Chinese language is now described as the national language, not just the language of the majority Han Chinese population. “The national common spoken and written language is a symbol of national sovereignty,” Hua Chunying, a foreign ministry spokesman, said when asked about the situation in Inner Mongolia. “It is every citizen’s right and duty to learn and use the national common spoken and written language.”

It doesn’t just end with the adoption of the Chinese language, history and culture as their own by the ethnic minorities, either; they must now also give up their traditional religious beliefs. That’s why Mr. Xi called for ethnic Tibetans to “recognize,” or identify with, Chinese culture, the Communist Party and the policy known as “socialism with Chinese characteristics.”

A common language and identity – namely, Chineseness for all – is now the most important thing for Beijing. Non-ethnic Chinese must, in effect, become Chinese, through a Sinicizing process of reducing and, if possible, eliminating differences between minorities and the Han norms.

The goal is that, ultimately, everyone in China – the 100 million Mongols, Tibetans, Uyghurs and more – will act and think like Han Chinese. In that world, Chineseness will become their only identity.

Opinion by: Frank Ching is a Hong Kong-based journalist.

Conflicted Irish politician compares Somalia and Outer Mongolia to the UK - seriously? www.brexit-watch.org

YESTERDAY the Irish politician, Neale Richmond TD, said while being interviewed on BBC Radio 4’s Today program that without a trade agreement, the UK’s future trading relationship with the EU should be compared to that of Somalia or ‘Outer Mongolia’ rather than to Australia. For someone who is shrilly purporting the UK could not survive without an EU trade deal (presumably one that includes EU access to UK fishing grounds and submission to EU State Aid rules), Richmond appears to know very little about EU trade – or even geography.

For a start there is no country called ‘Outer Mongolia’ – he was probably referring to Mongolia. There is a region of China known as Inner Mongolia but that is not a country. While Richmond is correct that Mongolia does not have a trade deal with the EU, he is wrong about Somalia. Being one of the least developed counties in the world, Somalia ‘benefits’ from the EU’s “Everything But Arms” trade initiative. However, they are a good example of how trade agreements do not seem to be especially important when it comes to actually trading with the EU.

According to Eurostat’s ‘Client and Supplier Countries of the EU27 in Merchandise trade in 2019’: while neither Mongolia or Somalia featured very high up on the list of EU trading partners, the EU bought over three times as much from Mongolia, €76 million worth of goods, without a trade agreement, than it did from Somalia with one, €23 million. In this case, having a trade agreement doesn’t appear to have benefited Somalia, at least compared to Mongolia. So maybe this was not the best example to use.

Nor did the lack of a trade agreement make much difference to EU exports to Mongolia or Somalia: the EU exported €486 million to Mongolia but only €129 million to Somalia – but no doubt this is a reflection of the countries relative ability to purchase the EU’s expensive manufactured goods. An attribute that neither Somalia or Mongolia share with the UK – a wealthy country that can definitely afford to buy the EU’s expensive goods and bought €318 billion worth of them in 2019, making the UK the EU’s second largest customer.

The EU’s largest customer was of course, the US, even though like Mongolia and Australia and China, the US does not have a trade agreement with the EU. So, should we worry if the UK is soon in the same situation?

China is still the EU’s largest supplier of imported goods without a trade agreement. While Australia was the EU’s 14th largest export market and its 35th largest import supplier, selling over €8 billion worth of goods to the EU without a trade agreement - that is over 80 times more than Somalia and Mongolia added together. So maybe Neale Richmond should have picked on two different countries for his illustration of how the UK would be left out in the cold without an EU trade agreement.

But the lack of UK-EU trade knowledge being spouted on the BBC did not end with Richmond’s interview. In a later interview with George Eustice, the UK Secretary of State for the Environment, Food and Rural affairs, who calmly explained that without an agreement the UK would be adding tariffs to EU imported goods. The Radio 4 presenter, Nick Robinson, another EU useful idiot, tried to flip the discussion to UK exports by insisting that the EU would reciprocate with ‘tariffs on our exports of a similar sort’.

It never ceases to amaze me how little media presenters know about UK trade. But as a rule of thumb, they should always assume, especially when talking about agricultural trade, that the UK is a net importer not an exporter. This should be done almost irrespective of the commodity under discussion. The UK is only a net exporter of whisky, milk, salmon, lamb and breakfast cereals but only the whisky trade surplus is measured in billions and most UK whisky exports go outside the EU. However, so many commentators would like us to believe that the UK is a major exporter of agricultural products – it just isn’t. Maybe commentators believe that exporters will get more public sympathy than importers and emphasising the impact on exporters will cause their audience to complain to the Government about the lack of an EU trade agreement. However, it is their audience who will have the most to benefit from trading outside the EU block.

However, back to Radio 4. Having got away with inverting the conversation from tariffs on Imports to worrying about the very few UK agricultural exports to the EU, Robinson then went on to tell his audience that the cost of beef would increase by 40% without an EU trade agreement. He did this massive piece of mental arithmetic based on the information that the EU beef tariffs were 40%, but even though he was feigning concern for UK beef exporters only a few minutes earlier, his miscalculation exposed his core belief – that the UK imports 100% of its beef and all of it from the EU.

Although this is mind-bogglingly stupid, what made it worse was that the Minister in charge of UK agriculture let him get away with it. Instead Eustice should have corrected Robinson and quoted some numbers that he ought to know by heart, and that can be found in his own department’s annual survey of Agriculture in the UK, 20191 , on page 83. That the UK produced 86% of the beef it consumed in 2019 and over the last 5 years the percentage of home-grown beef consumed in the UK has never been below 80%. Even if all of the 14% of the beef the UK imported last year, had had a 40% tariff added to its import price, that would only have increased average beef prices by 5.6%.

But the craziest element of this conversation was Robinson’s obvious Stockholm syndrome: why would he assume that the UK would continue to buy EU beef once it is outside the EU’s tariff regime?

Beef is not exclusively produced in the EU – it is not Champagne. Beef is produced in many countries and is generally produced at a lower cost outside the EU. The UK could buy the additional beef that it consumes each year from Australia, or Brazil, or Argentina, or Uruguay or the US. Sure, without a trade agreement imports from these countries would also incur tariffs, but as they are all more efficient producers than Ireland, their base prices would be lower before any tariff is added.

This should be worrying the Irish, if not the EU. If the UK signs a trade deal with Australia or the US or rolls over the EU’s deal with the Mercosur countries, then Irish beef will lose a lot, if not all, of its UK market share and UK consumers could find the price of beef in the UK goes down, not up.

Neale Richmond may have been hoping to scare the ill-informed Radio 4 listeners into pressuring the Government to accept the EU’s preposterous demands about access to UK fishing waters and compliance with EU State Aid rules, but the boot is most definitely on the other foot when it comes to trade. Because one thing the UK does have in common with Australia when it comes to EU trade, is a large trade deficit in goods. Although Australia’s trade deficit with the EU, at €22.6 billion is the EU’s 5th largest, it is a fraction of the UK’s trade deficit of €124 billion.

UK-EU Trade will not stop without a trade agreement, but EU companies and farmers will find suddenly they must compete with the rest of the world for UK customers. This is unlikely to end well for the EU. My advice to the EU would be to stop arguing about fishing and state aid and grab whatever trade agreement they can get from the UK. Otherwise they will be the ones who find themselves in ‘Outer Mongolia’.

By: Catherine McBride is an experienced economist, working in corporate governance, competition economics, global trade, financial regulation and public policy. Catherine gained her bachelor’s degree from the University of Sydney in the mid 80s, was a trader in equities, derivatives and commodities during the 90s and noughties, and following the EU referendum worked for the Financial Services Negotiation Forum, Legatum Institute and the Institute of Economic Affairs, before becoming freelance.

Mining operations degrade over 18,300 hectares of land in Mongolia www.xinhuanet.com

Mining operations have damaged at least 18,366 hectares of land across Mongolia as of 2020, the country's Environment and Tourism Ministry said Tuesday.

Mongolian Bankers Association gives latest banking sector review www.montsame.mn

Ulaanbaatar /MONTSAME/. On September 8, Mongolian Bankers Association (MBA) organized a press briefing to give an update on the current state of the country’s banking industry and macroeconomic situation amid the ongoing COVID-19 pandemic.

At the press event, L.Amar, Executive Director of the MBA highlighted that the coronavirus has had a significant impact on the Mongolian economy, causing it to decline and restricting demand and supply of commercial bank loans, as of the first half of 2020.

Following the economic expansion, commercial banks’ loan issuance volume had been experiencing growth in the past two years, however, bank loan issuance has reduced to MNT 17.3 trillion in the first half of 2020, showing a decrease of 4.6 percent. Consumer loan volume also dropped by 17 percent. In terms of loan categories, all types of consumer loans, except from savings-secured loans, diminished. In addition to the impacts by the pandemic, the bank lending decline is mostly caused by measures taken by the central bank to limit the consumer loans taken since 2019.

The volume of overdue consumer loans increased by 40 percent in the first quarter of 2020. However, thanks to the government measure to allow deferral of up to six months on the consumer loan repayment to alleviate the negative impact of the COVID-19 on individuals and business entities, the overdue loan growth has started to slow down to 21 percent, beginning from April 2020. Overdue loans now make up around 5.8 percent of total loans while nonperforming loans equaled to MNT 1.9 trillion, accounting for 11 percent of total loans. Accompanying the lending decline, imports of auto vehicle and electronic appliances reduced by 33 percent and 8 percent respectively.

As presented by L.Amar, the negative impacts, posed on the mining, transportation and tourism sectors by the COVID-19-related lockdown measures, commodity price falling and setback in the coal and copper exports were main causes of the country’s economy to decline by 9.7 percent. On the other hand, the country’s economy is expected to revive gradually thanks to the current volume of continuing coal exports and zero locally-transmitted COVID-19 cases in Mongolia, and business loan issuance are to grow back toward the end of this year.

Another adverse effect of the COVID-19 on Mongolia’s banking sector is an increase of foreign currency savings in total savings. In the first 6 months of this year, foreign currency savings rose by 48 percent and are now constituting 29 percent of total savings. This was also mainly due to gradual increase of Mongolian Tugrug to US Dollar exchange rate since last October.

During the press briefing, L.Amar also touched upon the recently-approved government’s strategy to reduce loan interest rates, which contain 47 measures. “38 measures or some 80 percent of the measures in the document are aimed at macroeconomic stabilization, stabilizing currency exchange rate and increasing foreign exchange reserves. With the help of these measures, the MBA will be further cooperating with commercial banks to reduce their own operational expenses. As a result, the loan interest rates are possible to be cut by 4 percentage points within four years” said L.Amar.

Coal export increases www.montsame.mn

Ulaanbaatar /MONTSAME/. Statistics released by the Mongolian Customs General Administration shows that Mongolia’s coal export increased significantly last month.

The business is run on four key values – Battushig Batbold www.thriveglobal.com

It takes an entrepreneurial spirit and unique international outlook to bring a business that started just a couple years after socialism ended, into the 21st century. Yet young businessman Battushig Batbold is working hard to do that as Chairman of Altai Holdings in Mongolia. Founded in 1992 by his father, Sukhbaatar Batbold who served as Mongolia’s 26th Prime Minister, Altai Holdings has evolved into one of the largest and most diverse companies in the country. What propelled the business to new heights and to emerge as a leader in Mongolian business—while attracting foreign investment—is its emphasis on modern operating principles and progressive tactics.