Mongolia Business and Mongolian Daily Business News

Previously, Mongolia Ipotek Corp. (MIC) issued ₮10 billion with interest rate of 14% and maturity of 5 years. “Its interest rate is closely related from the Central Bank rate and due to the decrease of central bank rate, its interest rate can be decreased down to 12,2-13%” says Mr. Koppa, Chairman of Board and President of Trade And Development Bank of Mongolia. MIC plans to issue another ₮15 billion before the new year.

A working group, chaired by MP D.Damba-Ochir on developing policy and documentation of “Processing copper concentrate and building copper smelting factory” was established by the resolution (No180) of the Speaker of SGK, on November 13 2009. The working group will present the document and policy to the State Great Khural within Q4 2009. Read the rest of this entry »

Budget of 2010 was under discussion. Draft budget law was criticized by many MPs. MP and Minister for Finance S.Bayartsogt has explanation.

Q: President said that budget spending hasn’t decreased, small power to the local self governance and reform takes long to take effect. What will be your answer? Can budget spending be decreased?

Minister S.Bayartsogt: There are few expenses decreased in the draft budget law. It is true that budget spending is not that much decreased. Also the budget must be presented in relationship with the newly adopted “Law on Human Development Fund”. Therefore certain reforms were allowed in the budget law. I believe that budget of 2010 can be the ignition of budget reform. Read the rest of this entry »

Mongol Bank had made the decision to organize Zoos bank as nationalized bank. According to this matter, working group lead by T.Ochirkhuu, Deputy Finance Minister of Mongol bank is working at the Zoos bank. In the second quarter of this year, Zoos bank had registered profits near 1 billion MNT but in the third quarter they had loss of 38 billion MNT and 52 billion MNT of unsecure loans. Ts.Myanganbayar of “Mongol Gazar” is to be blamed for the bankruptcy of Zoos says officials as he had loaned around 60 billion MNT which is not yet to be paid back. It was hard to detect all the loans says the Mongol Bank officials. Currently all the branches of Zoos banks are closed.

67.0 thousand shares of 16 JSCs were traded at MSE yesterday totaling 11.9 million MNT trade. 50.9 thousand Khukh gan shares were sold and it was the most actively traded share at the stock market. Index top 20 is 6188.71 units and was increased by 15.62 units if compared to the previous day’s trade. In comparison to the previous day’s trade, share prices of Tavan tolgoi (2.68 percent) and APU (2.07 percent) JSCs were increased but share prices of Darkhan Nekhi (-6.90 percent) and Shivee ovoo (-8.20 percent) JSCs were decreased respectively.

Mining sector is vital part of the Mongolian development. According to the Ministry of Mineral Resource and Energy, there are over 80 minerals in 1170 deposits and around 8000 mineral occurrences.

Foreign and domestic private investment in exploration business increased since 2007 and reached ₮280 billion. As of today, over 50 thousand people working in the mining sector. Mining sector contribution in the economy of the nation reached 28,2% of GDP, 64,3% of gross domestic production and 80,7% of total export.

Share trading of “Zoos bank” JSC was halted starting from November 20, 2009, according to official claim No.208 of November 20, 2009, of the Financial Regulatory Commission (FRC). FRC official claim was made in relation with Mongol bank President’s order No.651 of November 19, 2009, to appoint plenipotentiary to “Zoos bank” JSC. Read the rest of this entry »

5 stock trades were held during last week and 593.9 thousand shares of 33 JSCs were traded worth 285.8 MNT in value. Index top 20 is 6077.12 units and was decreased by 131.32 units or -2.1 in comparison to the previous week. The total market capitalisation reached 605.6 billion MNT.

Shares of 33 JSCs were traded and share prices of 15 JSCs were increased, 11 were decreased but 7 were unchanged at MSE. Shares which prices were increased are Jinst Uvs (31.1 percent), Zoos bank (27.1 percent), 22-r baaz (18.0 percent) but shares which prices were decreased are Mongolia Telecom (-32.5 percent), Bayangol Hotel (-15.2 percent) and Zoos Goyol (-10.9 percent) JSCs. Read the rest of this entry »

“Delger trade” JSC, “Bilgekh bayanburd” JSC, “Baruun-Urt us” JSC and “Deej” JSCs decided to reorganize their status into LLC. Thus, according to MSE Director&CEO order No.160, based on the Financial Regulatory Commission resolution No. 179, 202, 215, 216 of 2009, shareholders meeting decision of 2009 and companies’ request, “Delger trade” JSC’s 84589 shares, “Bilgekh bayanburd” JSC’s 207446 shares, “Baruun-Urt us” JSC’s 57912 shares and “Deej” JSC’s 56745 shares were delisted from MSE registered companies list. Read the rest of this entry »

According to International Monetary Fund (IMF), Mongolia’s economy will recover from the downturn from next year. It is associated with the Oyu Tolgoi mining project said the IMF representative. “Mongolia will experience low and stable inflation rate in the coming year and we have reached understandings on a broad range of macroeconomic policies and will continue discussions on some pending structural issues” IMF stated. IMF representatives visited Mongolia from October 28 to November 10 and mission was led by Steven Barnett.