Daily Business News Mongolia

Chinese premier says to strengthen cooperation with Mongolia

Chinese Premier Wen Jiabao (R) shakes hands with Sanj Bayar, prime minister of Mongolia, which is an Shanghai Cooperation Organization (SCO) observer, in Astana, capital of Kazakhstan, on Oct. 30, 2008. (Xinhua Photo)

ASTANA, Oct. 30 (Xinhua) — Chinese Premier Wen Jiabao said here Thursday that China will further enhance its cooperation with Mongolia amid dramatically changing international situation and the current global financial crisis.

On the sidelines of the 7th prime ministers’ meeting of the Shanghai Cooperation Organization (SCO), the Chinese premier met with Sanj Bayar, prime minister of Mongolia, which is an SCO observer. During the meeting, Wen hailed the continued development of the good- neighborly partnership between the two countries.

Both China and Mongolia are experiencing an important stage of development, and the two sides should strengthen communication and coordination in a bid to cope with challenges and lift China-Mongolia good-neighborly friendship to a new height, Wen said. (more…)

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Our government will cooperate with the world community to overcome the crisis.

Economy Policy conference was jointly held by the Government of Mongolia and World Bank Resident Representative at the Government House of Mongolia. The main agenda of the conference was how to get through the crisis with the minimum loss and it was attended by the leading economists of the world and Mongolia. (more…)

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S.Bayartsogt, the Minister for Finance: If Government withdraws its money from banks, the risk fund will replace.

Budget of two deputy ministers is not wasteful expense
Copper price decreased and globalised crisis. Banking sector is under huge challenge of getting through it. If Government withdraw its money from banks, some small banks might be collapsed and bankrupted.

Q: Copper price is decreasing. So, the election promises are vanishing?
S.Bayartsogt: Due to the copper price fall, we had to amend the budget project of 2009. Also the Mongolia Development Fund, based on the windfall 60% tax, will be decreased and children and new family money will be decreased accordingly. But “Grant of the Motherland” will be distributed after the realization of the major mining projects. Of course, if it will be distributed by cash, then it surely fuel up inflation.  We decided to reconsider all the previously implemented welfare projects. We will take effective and optimal ones and drop out wasteful and ineffective ones. If we can do so, we can provide welfare.  (more…)

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Minister for Finance S.Bayartsogt, David Dollar, World Bank Mongolia Director, Rashid Sayed, World Bank Resident Representative made press conference.

D.Dollar: Strict measurement made on increasing money supply and I think monetary policy is on the correct path. We should work on bringing the inflation into the single digit. If right monetary policy is pursued, it can be reached shortly. I am happy with the conference and I can say that this conference reached its target. As for the question of whether Mongolian Government shall own 51%, I would like to quote word of Mr. E.Gaidar, former Prime Minister of Russian Federation, saying “It is the issue of Mongolians, Mongolians should decide it, but if Russians had such a question, I would say it was very dangerous intention”. I would like to repeat it. Mongolians shall cooperate with the capable companies in mining industry with enough experience. (more…)

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EZNIS AIRWAYS DECIDES TO PURCHASE REGIONAL JET AND TURBOPROP AIRCRAFTS

Eznis Airways is a scheduled and charter airline with 100% domestic investment based in Ulaanbaatar. It is the largest domestic airline with services to a number of Mongolian domestic points, and authorization to operate international services to points in China, Russia and Kazakhstan.

The Board of Directors recently met in Ulaanbaatar on October 23 2008. They have approved Eznis to enter into negotiations to purchase up to five (5) additional turbo-prop aircraft, having a capacity between 46 and 66 seats. (more…)

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Statement of Mongol Bank

Reuters agency informed that the Mongolian Government is to bailout 500 million US$ for its commercial banks. The Bank of Mongolia made and official statement regarding this information.

“Reuters agency interviewed MP O.Chuluunbat, a former President of Mongol Bank, on October 28 2008. In the interview it said that the Mongolian Government is to bailout 500 million US$ for its commercial banks. (more…)

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595.4 thousand shares were sold at MSE

595.4 thousand shares of 16 SHCs were sold at MSE, totaling 65.2 million MNT trade.
591.7 thousand Remicon share and 14.9 thousand share of Monfresh share were sold at the primary market. 26.7 thousand Genco Tour Bureau share were sold and was the most actively traded share at the stock market. In comparison against the previous day’s trade, “Tuul Songino water reserve” share was increased by 4.76% and Anod share was decreased by 11.32% and Gobi share by 11.58% respectively.

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Justin Lin: Mongolia has a chance to covert the crisis into an opportunity

During the short break of the Conference on Economy Policy, Rashid Sayed, World Bank Resident Representative in Mongolia, Justin Lin, Chief Economist of World Bank, made a press conference. They answered several question from media.

Q: Mongolia is not well integrated in the world economy. Therefore people think that this crisis has less effect in Mongolia. What will it be in our banking sector?
A: I agree that its direct effect is minor. But it has indirect effect. Due to the financial crisis world economy growth is decelerating. If this influences in the Mongolian economy, then it will surely influence in banking sector. (more…)

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The Budget Modification will be amended

Further 205 billion MNT was cut off from the budget expense
The budget modification predicted that copper price will be 6700 US$ in the next year. But, sudden fall of copper price made copper price at 4128 as for October 28 2008. According to this, the Ministry of Finance will amend the budget modification and it is ready to propose to the Cabinet. Mr. B.Batjargal, head of the Budget Policy and Management Department of the Ministry of Finance, has his word regarding the issue. (more…)

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A.Batsukh, the president of Mongol Bank (Bank of Mongolia): It can’t be said that demand is decreasing because of only limited loan giving.

Q: Budget of year 2008-2009 and budget modification are under discussion. What is the position of Bank of Mongolia?
A.Batsukh: Basically, we need to pursue strict policy to shrink the budget. Budget expansion is recent years demanded increasing money supply. The increase of interest rate is the measure to limit money supply, but it results decreasing private investment. Therefore, harmony of flexible monetary and budget policy is required to avoid from creating negative impact of “push out private investment” from economy and double impacts of “price-salary-price”. I hope that the State Great Khural will understand it at the level of policy and make positive decision. (more…)

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