FMO provides USD 100 Million syndicated loan to XacBank www.zgm.mn

The Dutch Entrepreneurial Development Bank (FMO) has arranged a USD 100 million syndicated loan to XacBank, one of Mongolia’s leading universal banks. The five-year tenor of the loan will strengthen XacBank’s long-term funding base and allow the bank to further grow and expand in its focus areas in retail, micro and small and medium enterprises (SMEs). XacBank is actively engaging with the MSME sector with a focus on the underbanked segment, which matches well with FMO’s strategy to support economic and diversified growth in the country. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a close to 50-year proven track-record of empowering people to employ their skills and improve their quality of life. Linda Broekhuizen, Chief Investment Officer of FMO said, “The financing signals FMO’s long-term commitment to the Mongolian market and we are proud to collaborate in this large syndicate with our international financing partners OFID and IBEC. XacBank fulfills an essential role in providing finance to the underserved micro and SME segments in Mongolia contributing significantly to job creation as well as diversification of the Mongolian economy.” FMO commits USD 65 million and in addition mobilizes funding from diverse international financing partners: The OPEC Fund for International Development (OFID) commits USD 25 million and The International Bank for Economic Co-operation (IBEC) commits USD 10 million. “XacBank has a strong focus on MSMEs, Green Finance and retail customers as a part of its mission to create sustainable growth in the banking and financial sector of Mongolia. As we expect Mongolian economic growth to slightly decrease from 6.9 percent to 6.3 percent and despite facing challenging macroeconomic conditions in 2020, USD 100 million syndication loan to XacBank shows FMO’s high confidence and commitment to Mongolia and XacBank,” commented Tsevegjav Gumenjav, CEO of XacBank.

World Bank East Asia Pacific Regional Vice President Visits Mongolia www.worldbank.org

The World Bank Vice President for East Asia and Pacific, Victoria Kwakwa, concluded a two-day official visit to Mongolia on January 14. During her visit, she highlighted the progress the country has made on implementing the economic recovery program since the economic crisis in 2016, and the need to sustain reforms to stay the course.

Australia fires: Smoke to make 'full circuit' around globe, Nasa says www.bbc.com

Smoke from the massive bushfires in Australia will soon circle the Earth back to the nation, says Nasa.

Copper price jumps to 8-month high www.mining.com

On Monday in New York, copper for delivery in March closed the day near $2.8640 a pound ($6,314 a tonne), an 8-month high and up 3% from 2019’s closing level.

Mongolia-U.S.-Japan trilateral meeting held in Washington, D.C www.montsame.mn

Ulaanbaatar /MONTSAME/. A trilateral meeting between Mongolia, the United States of America and Japan took place on January 10 in Washington, D.C, USA. The meeting was co-chaired by D.Davaasuren, State Secretary of the Mongolian Ministry of Foreign Affairs, D.Stilwell, Assistant Secretary of State for East Asian and Pacific Affairs and Sh.Takizaki, Director-General of the Japanese Foreign Ministry’s Asian and Oceanian Affairs Bureau.

At the meeting, the sides exchanged views on strengthening the strategic partnerships and tripartite cooperation of Mongolia, the USA and Japan as well as issues concerning regional affairs and the Korean Peninsula during the meeting and released the following Joint Statement.

Joint statement on the Mongolia-U.S.-Japan trilateral meeting

Mongolia, the United States, and Japan held a trilateral meeting in Washington on January 10, 2020. The United States and Japan reaffirmed their commitment to strengthening their bilateral relationships with Mongolia in line with Mongolia’s “third neighbor” policy and the three sides’ visions for a free and open Indo-Pacific.

Mongolia, the United States, and Japan shared their respective visions for regional development, including in the Indo-Pacific, and exchanged views on how to cooperate to ensure a prosperous and peaceful future for a region of sovereign, independent, and democratic states. The three sides noted with satisfaction that the United States joined Japan as a strategic partner of Mongolia in 2019 and intend to strengthen these strategic partnerships.

Mongolia, the United States, and Japan reiterated that the DPRK must cease provocations, including launches of ballistic missiles, abide by its obligations under UN Security Council Resolutions, and engage in sustained and substantive negotiations to do its part to fulfill the commitments made at the Singapore summit. The three sides underscored the need for the full implementation of the relevant UN Security Council resolutions towards the final, fully verified dismantlement of the DPRK’s weapons of mass destruction and ballistic missile programs in accordance with those resolutions. The three countries emphasized the importance of addressing humanitarian concerns, including the immediate resolution of the abductions issue.

The United States and Japan expressed their commitment to continue supporting Mongolia in strengthening its anti-money laundering capability in line with the recommendations of the Financial Action Task Force. All sides underscored their shared desire to deepen their economic partnership, including through enhanced collaboration in the areas of energy development, the digital economy, and cybersecurity. They also discussed the importance of developing Mongolia’s business climate and ability to attract investment, particularly from the United States and Japan, through improved transparency, predictability, and enforcement.

Mongolia, the United States, and Japan intend to hold the next round of the trilateral meeting in Mongolia.

Ministry of Foreign Affairs of Mongolia

EBRD to fund UB city heat supply project www.zgm.mn

The Government of Mongolia and the European Bank for Reconstruction and Development (EBRD) signed an agreement to implement the Ulaanbaatar heat supply project. The project is expected to increase the capacity of Ulaanbaatar’s central heating system. EBRD is providing USD 137 million for investments to double the throughput capacity of the 202-kilometer road between Mongolia’s capital Ulaanbaatar and the third-largest municipality of Darkhan. The investment will address the issue of road safety and will bring a number of economic benefits for the country and the region. In addition to employment opportunities, the improved road will offer better infrastructure, including rehabilitated bridges and flood protection installations, which will result in safer rides for the community and transit vehicles. “The construction work of Ulaanbaatar­Darkhan road had been guided from Mandaluyong, headquarter of the Asian Development Bank. However, the implementation of the project was assumed as disqualifying and not intensified. Based on the fact, we decided to manage the project from Ulaanbaatar last week,” addressed the Ministry of Finance, Khurelbaatar Chimed. The investment is supported by the Ministry of Road, Transport and Development of Mongolia and benefited from technical cooperation funds provided by the EBRD. The funds will assist in making the state road fund operational and help improve overall road maintenance in the country. The EBRD investment is complementing earlier works along the same transport corridor funded by the Asian Development Bank (ADB).

Culture Minister: Three historical buildings to be renovated with MNT 6 billion www.montsame.mn

Ulaanbaatar /MONTSAME/. Public concerns have been raised since last year as several historical buildings located in Ulaanbaatar city might be demolished to make room for new buildings as it was revealed that the 2020 State Budget was adopted with from MNT 52 billion to MNT 94 billion budgeted for each building.

In particular, buildings of National Academic Theater of Opera and Ballet of Mongolia, National Academic Drama Theatre, Central Library of Mongolia, Natural History Museum and Central Stadium were included in the list of buildings to be funded by the State Budget for 2020 as new construction developments with budgets as following.

National Academic Theatre of Opera and Ballet of Mongolia – MNT 54.6 billion

National Academic Drama Theatre – MNT 52 billion

Central Library of Mongolia – MNT 52.4 billion

Natural History Museum – MNT 94.4 billion

Central Stadium – MNT 80 billion.

In October 2019, Prime Minister of Mongolia U.Khurelsukh announced that the buildings of National Academic Drama Theater, National Academic Theater of Opera and Ballet of Mongolia and Central Library of Mongolia will be demolished due to their poor condition of structure and newly built on its location, replicating its original design. This has garnered public criticism, including the Union of Mongolian Architects, who claimed that those buildings hold cultural heritage and architectural values, and demanding preservation and restoration of the buildings instead of demolition.

Concerning the prolonged public outcry, Minister of Education, Culture Science and Sports Yo.Baatarbileg today clarified during his meeting with reporters that “Buildings of National Academic Drama Theater, National Academic Theater of Opera and Ballet of Mongolia and Central Library of Mongolia are planned to go under renovation this year with funding of MNT 2 billion from state budget for each. The official position and decision of the Ministry of Culture not to demolish them remain the same as before”.

He also said the misleading information or false claims, such as possible land grabbing, that have been spread ahead of the upcoming 2020 Parliamentary elections, are preventing the government to carry out its huge development works planned in the culture industry. “I will be working at these three organizations this week regarding their renovations, which will be completed by 2021.”

The aforementioned three buildings in Ulaanbaatar are erected between 1931 and 1951 are deemed to be an outstanding example of neoclassical architecture in Mongolia. Last year, the Mongolian Union of Architects claimed that those buildings along with the demolished natural History Museum is under state and public protection and is registered in the database of Mongolian cultural heritage.

In December 2019, a building of the Natural History Museum was demolished in spite of a widespread criticism of several months. The museum closed its doors in 2013 as it does not satisfy the functional needs and standards of museum. The government resolution was made in July 2019 to re-build the Natural History Museum near the Ikh Tenger in the Bogd Khan Mountain, an official residency of heads of state and government, and a new museum of Chinggis Khaan to be constructed on its location instead.

200-bed model hospital to be commissioned in first quarter www.montsame.mn

Ulaanbaatar /MONTSAME/ In January 13, Minister of Health D.Sarangerel and delegates of the Asian Development Bank (ADB) got acquainted with construction progress of a general model hospital, which is being built in Songinokhairkhan district with financing from the ADB. With capacity of serving for 157 thousand citizens of the district, the model hospital is expected to be commissioned in the first quarter of this year.

Development plan for knowledge economy introduced www.montsame.mn

Ulaanbaatar/MONTSAME/. At the initiative of the Mongolian National Chamber of Commerce and Industry, the Speaker of Parliament G.Zandanshatar held a meeting with businessmen on January 11, exchanging views on timely issues and economic development of the country.

President receives World Bank delegates www.montsame.mn

Ulaanbaatar /MONTSAME/ President Kh.Battulga today received Ms. Victoria Kwakwa, the World Bank’s Regional Vice President for East Asia and Pacific and Mr. Andrei Mikhnev, World Bank’s Country Manager for Mongolia.