Mongolia Business and Mongolian Daily Business News

MP Z.Enkhbold shares his opinion on recently occurring banking turbulence and he says “Bank bankruptcy is nothing serious, almost every day banks go bankruptcy”

Q: “Zoos” bank was overtaken by the Government and Government bond is about to be offered. Was it because of the Government guarantee on saving accounts? Shall the Government bear the responsibility of bank’s loss?

MP Z.Enkhbold: Many banks were bankrupted in last 20 years and the state paid their losses. Every time, when such action was occurred, the officials explained that its loss would be paid back by people who borrowed from banks. Read the rest of this entry »

ULAANBAATAR, Mongolia — Mongolia’s new prime minister wants to pursue an initial public offering of the country’s state-owned mineral assets on an international stock exchange as a way to generate more money from natural resources that have recently attracted a flood of foreign investment. View Full Image MONGOLIA Government of Mongolia Prime Minister Batbold Sukhbaatar said it was time for Mongolia to begin thinking about a move to international financial markets. Read the rest of this entry »

Cabinet Meeting discussed the issues of Budget of Mongolia in 2010, State Monetary Policy and main directions of developing economy and society, and presented these documents to the Speaker of the State Great Khural. President of Mongol Bank L.Purevdorj has more on state monetary policy.

Q: What monetary policy will be pursued in 2010? What are the main qualities?

L.Purevdorj: It has two main qualities. Prior to all, it will reduce the pace of economy downfall and encourage growth. We planned to increase the economy growth to 7.4%. within the framework of the plan, the following measures including holding inflation at the level of 8% in maximum, sustain stability of domestic currency rate and increasing foreign currency reserve, will be taken. We will focus on optimizing the current inadequacy of credit, ceasure of bank loan giving and timidity of credit taking. Secondly, banking sector is most severely affected by the financial crisis and  economy recession. The state monetary policy will focus on overcoming credit crunch, relieving banks from “bad” loans and recovering banking sector. In order to achieve these targets, we need to increase discipline and transparency in the financial sector, funding and strengthening banks’ capacity. Read the rest of this entry »

D.Ganbold: President of the Mongolian National Mining Association: Does the Government of Mongolia have budget to compensate over 1000 mining exploration companies?

Q: Your presentation at the NAMBC conference was interesting and in the presentation, you made analysis on the amendments in four laws that affected mining industry. What were the main obstacles or advantages of these amendments?

D.Ganbold: There are better and worse provisions in the mining law amendments in relationship with the OT IA. The repeal of WFP (windfall profit) tax is the biggest gain of these changes. Also some laws such as “Law on prohibiting exploration and mining minerals from river source protected water and forest reservoir areas” and “Law on Nuclear Energy” will bring more problems in the future. “Law on Nuclear Energy” breaches many domestic laws and also international laws, agreements, even the Constitution of Mongolia. Upon approval of this law, interest of mining many companies and their investors is under risk. Share is private property. It is regretful that the Government of Mongolia stated to own this property free. Also the law was adopted to divide authorities of state registration and cadastre. These provisions are impossible for the professional operations many disputes are awaiting in relationship with this provision. Also it failed to state the solution to probable disputes. Read the rest of this entry »

Mr. S.Enkhbat, the Head of Nuclear Energy Authority confirms urgency of government actions towards uranium industry.

Q: Uranium has different emphasis than economy one, such as political?

S.Enkhbat: Yes, it has much political importance than economy one. Uranium has secondary usage. Some MPs said that copper has secondary usage, bullet cover, but uranium has power and potential of mass destruction. Uranium is usually under control of the state. Therefore, major powers have interest in involving in the uranium industry. These interests are managed and regulated by IAEA. As for Mongolia, it will be better solution to exploit uranium with help of one or more countries managed under this organization. Mongolian Government decides to obey international legislation. Read the rest of this entry »

The SGK approved the four draft laws during yesterday session. The ideal environment for signing OT IA was built by the Government and SGK. We have asked few questions from S.Bayartsogt, Minister for Finance, regarding the investment agreement.

Q: The Government presented four laws were approved by the SGK. You would not face any difficulties to sign the agreement now? Read the rest of this entry »

Interview of Sh.Saikhansambuu after he left the meeting of the Standing committee on budget due to frustration towards the decision of law on windfall profit tax.

Q: What are the things that frustrated you?

A: You have seen the environment during the standing committee’s meeting. The 68% windfall profit tax took long period of discussion and argument when it was approved. Now it is very depressing that we are abolishing a whole law for a one company. Read the rest of this entry »

Interview of MP R.Gonchigdorj

Q: You have left your holiday early and came to the Capital. Is it possible that you’re coming to the Capital for the irregular session of SGK?

R.Gonchigdorj: When the spring session of SGK ended it was nearly obvious that irregular session of SGK was going to be held. I wanted to stay longer in the countryside but it is possible that the irregular session will take place. I believe that MPs should be willing to give up their holidays for a project that will boost the economy and improve the living standards of our people.

Read the rest of this entry »

9200 USD per ton is absurd, let’s give the power to the Government.

Q: Many people worried about urgency of signing IA on Oyu Tolgoi. Being as an expert in this field, how do you see this development around OT IA?

MP Kh.Narankhuu: Before talking about details, I pay much attention on reaching comment agreement or consent on the principle Based on this principle, the correct decision will be made. I see many different and wrong understanding according to the principle.

Q: What exactly? Read the rest of this entry »

Implementing law on nuclear energy had been discussed in last week’s SGK session. Some MPs elected from Dornod and Sukhbaatar provinces were against it as they believe the draft had some fault. They agreed to present the new draft to the SGK in upcoming autumn session. We have P.Altangerel to speak about the nuclear energy in Mongolia.

A: I agree that the law should be approved. Uranium is unique and incomparable to other mineral resource and it has to do with politics rather than economics. As it is used for nuclear weapons its exploration and development processes are closely monitored. International agency for nuclear energy requests that it should be monitored by 3rd party to have better monitoring but the draft resolution made last week had given the rights to the director of the nuclear power agency. This was a mistake as the director got all the right to provide license, monitor and cancel the licenses rights which means it is same as having no tracking or monitoring. We have to improve this monitoring process as uranium is very dangerous. That is why we are planning to provide the new draft in the august session of the SGK. Read the rest of this entry »