Daily Business News Mongolia

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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INTERVIEW-Central Bank says Mongolian banking system stable

By Lucy Hornby

ULAN BATOR (Reuters) - Mongolia’s banks are adequately capitalised, with no need for a big financial injection, a senior central banker said on Wednesday.

B Enhhuyag, first deputy governor of the Bank of Mongolia, said a former central bank chief “exaggerated” on Tuesday when he said the banking system would need a capital injection of $500 million.

“We are officially stating: the banking system does not need any bailout. The fundamentals are safe and sound,” Enhhuyag told Reuters. (more…)

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Government will have 41 agencies

The new Government will have 41 agencies. There will be 30 implementing and 11 instructive agencies. Also new agencies such as Road Transportation Authority, Agency of Family Development, Agency of SME, Agency of National Development were planned. Also some agencies will be shut, but not their activities, they will be transformed into the State Entities.

(more…)

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Rio’s Mongolian mine under a cloud

Cost projections for mining the Oyu Tolgoi deposit in Mongolia’s Gobi desert have risen significantly and financing is harder, even as foreign miners await the terms of a minerals law being drafted by Mongolia’s government, the head of the joint venture developing the mine said.

Rio Tinto bought a stake in Canada’s Ivanhoe Mines in order to jointly develop Oyu Tolgoi, one of the world’s largest copper deposits. The deposit’s size and promise prompted Mongolia to revise its laws, to ensure a state share in the country’s mineral wealth.
(more…)

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