PM N.Altankhuyag: USD300 million remains from the bond money

Sep 27 • Featured, News, State Affairs • 7521 Views • No Comments on PM N.Altankhuyag: USD300 million remains from the bond money

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On a weekly 30 minute session with the Prime Minister, Government for Change has given answers for the questions from journalists as a conclusion for 1st anniversary.

According to the Prime Minister budget needs to be adjusted due to decrease in export revenues. The PM is planning to pay an official visit to China in the near future and during the visit there will talks around the economic cooperation with the country. It includes issues regarding infrastructure and logistics. 

It has been said that you sued 3 journalists. Is it true?

I have been in politics for over 23 years. I never sued a journalist. Once, I took Terguun newspaper to a court. The ones that shields with a journalist and a make them write a paid things are the ones who should responsible. Therefore, the rumour is not true, you can say that there will never be such action from me. If a certain media entity is proceeding with a smear campaign, it should be fully responsible for the words as a editor or the owner.

Your government said that 35 thousand jobs have been created and unemployment is decreasing. But, those who are above 40 cannot find jobs. What is the policy of the government on this issue?

Government of Change has initiated to establish the Labour Ministry separately. This is contributing to the employment rate of the people who are over 40 years old. In a year, it trained over 6600 people, and provided with 3-month intern-ship. There are many people who are included in this program that over 40 years old. Those who are actively looking for employment can find work through the Ministry, and from there to training centres. Demand for labour is enormous at the current time. If you have visited the job fair yesterday at Chingis Square, you may have noticed how skilful the gentleman who had been trained for just 5 months in operating an excavator. Today in Mongolia, there many jobs for people who want to work. Those who are studying at the specialized training centres receive MNT190 thousand. Therefore, I suggest the people who over 40’s to take on the opportunity.

Can you update us on the expenditure of Chingis Bond ?

Out of USD1.5 billion we have already spent the USD700 million. Out of the remaining USD800 million, USD500 million is planned on various projects. We are planning to spend the last USD300 million for supporting the goods producers and manufacturers. The final decision is yet to be made.

During your official visit in Japan, you have stated that the government will issue Samurai Bond. When will it commence?

During visit, we have contemplated the idea. The idea was discussed in general. It doesn’t mean that we had already decided to issue the bond.

Representatives from Development bank will make presentations on Mongolian economy. If they can make them confident in the bond, it will be sold. That will be the principle of the process.

You are going to visit China in the coming month. What issues are included in the agenda?

We are aiming to bring our economic cooperation on the new level, and make it possible for a mutually beneficial relations. We met the Chalco representatives, we Chalco debt will be paid off within this year. They have interest to work with us in the coming years. We will meet ChingHua too. Before the the visit, we will try to solve issues on logistics. Railways and airways will be the main topic, how much will it cost to ship our goods on Chinese territory etc. If we reach an agreement before the visit, during the visit we will be signing the agreement.

Is there going to be a budget adjustment? The budget revenue is lower MNT1.5 trillion than planned? 

It has become necessary that we need to make some adjustment on the 2013 budget. Sliding royalty would have given us MNT450 billion from OT project, but due to certain reasons there are difficulties collecting them. Our export has diminished. Because the tax revenue is not reaching the planned target, we are trying to save what we can.

What control does Bank of Mongolia has over the commercial banks when providing the 8% mortgage?

Khas Bank has stated that they are providing these mortgages without any disruption. The question should be asked from the Bank of Mongolia.

The coal price has increased from last year for the local consumer. Will there be actions taken by the government such as subsidized coal supply?

We will take measurements regarding the coal price. Some degree of subsidization will be in place. Nalaikh coal accounts for small percentage on local consumers demand. So, the coal price will not be increased just because of that.

During the Asian Banking Association meetings the advice was to cease issuing bonds from our country. Then, what triggered us to issue Samurai Bond just after Chingis Bond?

The SGK approved that the government can issue bonds for up to USD5 billion. The first phase was USD1.5 billion, and the remaining is USD3.5 billion. Government can issue USD3.5 billion bond on the right moment. The idea is to issue USD1 billion or USD600 million in Japanese market. The bond money from Japan will not be affect the budget. The main mission is to have a paved road to all 21 provinces. I think you would agree that it is right action. Because, we cannot build it with the state budget, we are having no choice but to fund it from foreign funds. The crossroads and junction maintenance and re-constructions in the capital is one of the examples. Necessary projects will be funded by the bond money.

Besides the infrastructure, we have a need to support and develop our manufacturing and production industries. For example, if we could produce the cotton from wool, we could supply the uniforms for school children 100% from local producers. However, the state budget cannot afford these support, we need to use the bond money. If factories can expand their capacity with the bond money loan, 3 fold goods will be made in few years. We will pay off the bond with it. We will not distribute bond money as welfare of 16$ per person like the previous government.

Government stated earlier that in order to affirm the continuation of 8% mortgage program, it is re-financing the Social Insurance Fund, is this work being done?

We are working on how to proceed further with the mortgage loan just as we planned and stated when it started. The good things is we have more young people working than those receiving a retirement plan. Therefore, you could say that we have an advantage.


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