The night-library can take 100 students and has comfortable desks and chairs as well as internet-access. Those students wanting to use the night-library must register before 10.00 p.m.; that is when the doors are closed until 07.00 a.m. next morning.

The newly constructed 6-storey library of the National University of Mongolia has a modern interior providing a comfortable atmosphere for students to study. Reading rooms are located on the 1- 4th floors, while lecture halls and laboratories are on the 5-6th floors. The library has seats for 700 students, but they are also provided with a convenient extra space for reading and studying.

-Monetary Policy Committee of the central bank maintained the policy rate for three consecutive meetings this year. Especially, the last decision has been made amid suggestions to decrease the rate slightly. What was the main reason to keep policy rate unchanged again?

-Well, inflation is likely to be stabilized around the central bank’s target rate, economic growth may slow, and the
uncertainty in the economic situation may proceed. These are the main three reasons. Growth of the bigger economies is expected to decrease in the following year, which will affect Mongolia directly. Therefore, the burden on the foreign trade balance and the exchange rate may increase as 2020 is the election year. BoM’s reform in the economy has not been completed yet, so the interest rate con not be decreased before we see any results. The policy of economic restructuring or the allocation of inter-sectoral capital has not been implemented completely. Considering all the situations mentioned above, the committee decided to keep the policy rate, rejecting the suggestion to decrease it by 0.5 percentage points.

-What measures should be taken to accelerate economic growth?

-We need to increase our export productivity and supply. To do this, we should speed up the completion of railway projects, such as the Tavantolgoi-Gashuunsuhait, and the customs modernization projects. As a result, the incoming currency in Mongolia may increase, enabling the possibility to stimulate economic growth through monetary policy from the central bank.

-Is it possible to prevent external economic risks by increasing foreign exchange reserves when government bond repayments are due in 2020?

-Foreign currency reserves are intended to finance short-term debts and deficits. In other words, it is important for balancing the short-term foreign trade deficit and in case of sharp fluctuations in exchange rates.

More specifically, a special asset department has been set up at the bank, getting debts of over four billion repaid over the past five months. Following the investigations of the Government and National Audit Office, to eliminate duplication of functions, the number of the bank’s central administrative units was decreased by 18 percent, saving MNT3.1 billion from operational cost, in addition to salary budget cut of MNT 460 million. It was underscored that the bank’s salary budget of next year will be less than the previous year.

The bank is currently taking actions in phases to upskill its personnel, collaborate with international banks and financial institutions and introduce international quality management and information security standards. These are the actions related to structural changes of the bank.

The bank is also taking policy actions to be independent as much as possible from politics and focusing on its profitability and loan portfolio quality.

As of November, 2019, the bank’s overall assets amounted to MNT 4.2 trillion. The bank is now dealing with problem loans of 22 borrowers totaling MNT 704 billion and collaborating with the prosecutor’s office on eight borrowers’ loans of MNT 662 billion. In addition, 14 borrowers’ non-performing loans of MNT 45.9 billion have been brought to court. Terms and conditions of loans worth MNT 353 billion changed.

The Development bank is allowing business entities with active operations some additional time to repay their loans without requiring any legal actions against them.

Regarding construction and industrial investment, a total of MNT 620.1 billion of loans were issued for programs and projects of this area in the first 11 months of this year, which include,

Processing industry – MNT 314.7 billion,

Infrastructure of electricity, gas and ventilation - MNT 107.2 billion

Mining and extractive industry MNT 83.8 billion, and

Other industry MNT 113.7 billion.

The DBM CEO highlighted that the DBM provides funding for manufacturing and industry that are export and long-term-growth-oriented and also deemed as significant for economic diversification and strategically important for the country’s economy.

In particular, Development Bank of Mongolia has invested a total of MNT 277.3 billion for 34 cashmere factories in the last two years to support the ‘Cashmere’ program, revised by the government in 2008. “DBM has been carrying on with the ‘Cashmere’ program this year and next loans within the program will be issued for companies in a timely manner soon after the Mongolian Lunar New Year holiday ” Mr. H.Amartuvshin said.

Within the five-year agreement, ‘Erdenes Silver Resource’ LLC is to supply fine silver bars with not less than 850-980 percent purity and receive the amount of payment as stated in the agreement. Speaker of Parliament G.Zandanshatar and Governor of the Bank of Mongolia B.Lkhagvasuren witnessed the signing of the agreement by CEO of ‘Erdenes Mongol’ LLC P.Gankhuu, CEO of ‘Erdenes Silver Resource’ LLC T.Munkhbayar and head of Reserve Management and Financial Markets Department of the BoM A.Enkhjin.

During the event, Speaker G.Zandanshatar remarked, “We believe that operations of Salkhit silver deposit will help to increase Mongolia’s foreign currency reserve. The signing of a five-year cooperation agreement between Erdenes Mongol LLC and the Bank of Mongolia lays a foundation to establish a Sovereign Wealth Fund. Article 6.1st of the Constitution of Mongolia reads, “The land, its subsoil, forests, water, fauna, and flora and other natural resources in Mongolia shall belong exclusively to the people and be under state protection.” The income from the deposit will be accumulated at the Sovereign Wealth Fund.”

CEO of Erdenes Silver Resource LLC T.Munkhbayar said, “According to the company’s business plan, it aims to extract and refine 750 tons of silver in five years and sell to the Bank of Mongolia. We plan to refine 25-30 tons of silver in the first year. We could refine 500 kg of silver in a very short period. Today, we are presenting a sample of the fine silver to the State Fund of Treasury, the Bank of Mongolia. From next June, our plant will start operating with its full capacity.”

It has been decided to determine the loan interest rate and term of loans to be issued by commercial banks for reserve meat preparation in accordance with the Mongol Bank policy rate, agreeing with the companies.

The office told Xinhua the loan approved in mid-December will be used to improve livestock health and increase the value of meat, dairy and other livestock products by commercializing targeted value chains at select locations.

"Improving livestock health and livestock productivity by commercializing the value chain will enable greater economic diversification and contribute to broad-based employment and income growth in rural areas and at the same time improve food security and food safety," said Andrei Mikhnev, World Bank country manager for Mongolia.

Mongolia, a landlocked East Asian country, has a vast area of pasture lands. Official data show there are more than 230,000 herder households with livestock animals nationwide, and the number of livestock animals surpassed 66.46 million by the end of 2018.

Despite a great potential for development, Mongolia's livestock sector is faced with major challenges including low productivity, animal health issues, and vulnerability to climate change and extreme weathers, according to the World Bank.

This will be the third time that Ambassador Kobayashi has been appointed as Tokyo’s top envoy to Mongolia. The ambassador’s long experience will be beneficial for expanding economic cooperation and the strategic partnership between Japan and Mongolia, noted President Kh.Battulga.

One of the top projects on the agenda is a railway project connecting the Tavan Tolgoi mine and the Gashuun Sukhait Border Crossing. Tokyo has been paying great interest in the project; it is likely to become an important field of joint cooperation between Mongolia and Japan.

Impostors represent one of the main current challenges in the field of identity fraud. The training aimed at supporting Mongolia in its efforts to decrease the number of criminals crossing its borders under a fake identity, thereby contributing to wider efforts to combat transnational threats in compliance with OSCE commitments and international standards.

Twenty-five experienced representatives of National Police, the General Authority for Border Protection, the National Institute for Forensic Science, Customs General Administration and Immigration, and teachers of the University of Internal Affairs participated in the training.

The event had a strong interactive component, which included practical exercises on recognizing an imposter, hands-on work on original and forged documents, as well as how to use forensic equipment to identify forged documents.

Twenty-five high-quality hand-held magnifiers used during the course were donated by TNTD/BSMU to the participants who interact and screen travellers as part of their daily duties.