In November 2018, 2.3 million tonnes of freight and 194.4 thousand passengers transported by railway transport. The freight volume decreased by 136.4 thousand tonnes (5.7 percent), and the number of passengers decreased by 21.2 thousand (9.9 percent) compared to the previous month.

In the first 11 months of 2018, 39.7 percent of the total carried freight through railway was domestic freight, 36.0 percent was export freight, 11.1 percent was import freight and 13.2 percent was transit freight. Export and import freights increased by 1.0 points and 0.9 points, while domestic freight and transit freight decreased by 1.7 points and 0.3 points from the same period of the previous year respectively.

In the first 11 months of 2018, the revenue from railway transport reached MNT 561.2 billion, increased by MNT 80.6 billion (16.8 percent) compared to the same period of previous year.

In the first 11 months of 2018, 2.9 thousand tonnes of freight and 867.5 thousand passengers (double counting) transported by air transport. The freight volume increased by 73.8 tonnes (2.6 percent) and the number of carried passengers increased by 97.6 thousand (12.7 percent) compared to the same period of previous year. In November 2018, 240.5 tonnes of freight and 71.1 thousand persons transported by air transport. The freight volume decreased by 63.4 tonnes (20.9 percent), and the number of carried passengers decreased 7.2 by thousand (9.2 percent) from the previous month.

In the first 11 months of 2018, the total of domestic passengers travelled by air transport reached 325.5 thousand (37.5 percent) showing a rise of 36.6 thousand passengers (12.7 percent) from the same period of previous year. The number of international passengers reached 542.0 thousand (62.5 percent), reflecting an increase of 61.0 thousand passengers (12.7 percent) compared with the same period of previous year.

The revenue from air transport reached MNT 395.9 billion, increased by MNT 37.9 billion (10.6 percent) compared to the same period of previous year. In November 2018, revenue from air transport reached MNT 24.0 billion, decreased by MNT 2.1 billion (8.0 percent) compared to the previous month.

In November 2018, equilibrated revenue and grants of the General Government Budget decreased by MNT 303.2 billion and total expenditure and net lending increased by MNT 33.9 billion from the previous month.

Tax revenue reached MNT 7.4 trillion, increased by MNT 1.7 trillion or 30.8 percent compared to the same period of the previous year. This growth was mainly affected by increases of MNT 483.6 billion or 32.7 percent in value added tax, MNT 437.2 billion or 30.5 percent in income tax, MNT 264.3 billion or 22.9 percent in social security income, MNT 230.5 billion or 50.1 percent in excise taxes, MNT 160.8 billion or 35.3 percent in revenue of foreign activities and MNT 134.9 billion or 25.5 percent in other taxes.

The General Government revenue were comprised of 81.4 percent of tax revenue, 9.6 percent of non-tax revenue, 6.7 percent of the future heritage fund and 2.2 percent of stabilization fund.

In the first 11 months of 2018, total expenditure and net lending of the General Government Budget amounted to MNT 8.0 trillion, increased by MNT 522.6 billion or 7.0 percent compared to the same period of the previous year. This growth was affected by increases of MNT 379.2 billion or 6.3 percent in current expenditure, MNT 80.4 billion or 37.3 percent in net lending, MNT 63.0 billion or 5.4 percent in capital expenditure, whereas, subsidies decreased by MNT 26.3 billion or 12.1 percent and MNT 33.5 billion or 3.4 percent in interest compared to the same period of the previous year.

The General Government expenditure and net lending were comprised of 80.7 percent of current expenditure, 15.3 percent of capital expenditure and 4.0 percent of net lending.
source: National Statistics Office

Within the project, thermal power plants will be constructed in Arkhangai, Bayankhongor, Gobi-Altai, Gobisumber, Dundgobi, Zavkhan, Uvurkhanga, Sukhbaatar, Khentii and Tuv aimags alongside expansion of heating network and modernization of equipment.

The plants will be built with the soft loan worth over USD148 million. The loan with 0.15 percent interest will be repaid within 40 years and will have a moratorium period of 10 years.

Moreover, the Cabinet made a resolution on authorizing to sign the Loan Agreement objecting to the reduction of air pollution of Ulaanbaatar city.

The agreement reflects that USD40 million out of USD60 million which is stipulated to be a budgetary support will be received this year and remaining USD20 million will be received in the third quarter of next year. The loan has repayment term of 30 years, interest of 1.5 percent and moratorium period of 10 years.

According to Mr. Bayartsaikhan, the FX reserves of Mongolia currently stands at a record-high of USD 3.4 billion. “Although the reserves hit USD 4.1 billion in 2012, USD 2.1 billion were raised from Chinggis and Development Bank bonds that year. The current amount may seem high; however, it is still insufficient for the current economic situation. Mongolia needs to settle its foreign debts, which reached USD 27.9 billion. There is a high risk of collapse in global economy. Major bond repayments will mature starting from the second half of 2020. Thus, it is ill-advised to utilize the FX reserves instead of saving it.”

He then explained the depreciation of MNT, saying “Amid high economic growth, FX reserves and stability in the financial market, the MNT rate fell by around 200 points in the last two months. This is due to the vulnerability of the economy that is highly dependent on mining sector. For instance, China started limiting its coal import in November. Compared to October, FX purchase of private entities grew by over USD 240 million in November and the first month of December.”

Mr.Bayartsaikhan also informed that the BoM, in order to stabilize the situation, injected over USD 400 million into the FX market as an intervention; however, the currency rate further sank, which was the indication of a speculative demand for money. This year in total, the bank administered USD 1.2 billion into the market. Last week alone, the bank supplied USD 130 million, said the Governor of BoM. He further suggested the Government to focus on political stability and avoid uncertainty to boost investors’ confidence and support export. “This is critical at the moment as Erdenes Tavan Tolgoi JSC is seeking to issue an IPO at international stock markets.”

In 2012, the Trade and Development Bank of Mongolia, in cooperation with Netherlands Development Finance Company, introduced the first Sustainable Finance program “Environmental and Social Management Systems” (ESMS) in Mongolia. As a result, the national roadmap was approved in the following year. The forum was initiated following an imminent need for private and public cooperation to develop and effectively implement policies, actions, and initiatives in line with the commitment of the Government of Mongolia to the global sustainable development agenda and the Paris Agreement, and the unanimous commitment of the banking sector to advance sustainable finance in the country.

According to the Mongolian Sustainable Finance Association (MSFA), a total of MNT 1.3 billion was granted to environmentally-friendly projects in the last five years. Furthermore, the banking sector financed another MNT 16 billion on environmental projects within this period.

• A total of MNT 1.3 billion allocated to environmentally-friendly projects since the program inauguration.

• Banks financed MNT 16 billion on environmental projects in the last five years.

• SME demand for green loans stands at USD 1.5 billion.

A market study conducted by the Mongolian Bankers Association (MBA) and MSFA shows that the small and medium-sized enterprise (SME) demand for green loans stands at USD 1.5 billion. Specifying by sectors, construction and processing plants require significant amount of loan. Thus, commercial banks informed that a low-interest credit source will allow them to distribute discounted loan for environmentally-friendly projects for SMEs.

Traditionally, the MBA annually selects a flagship bank to steer the business organizations towards environmentally and socially-friendly. In this year’s forum, the association picked Khan Bank to be in charge of green development activities in 2019. Thus, the bank will be responsible for protecting cultural heritage, supporting green economic growth and developing transparency.

The agreement does not affect the railway entry crossing at Zamyn Uud; the international train schedule will continue as usual.

"The Mongolian economic growth is forecast to reach 6.4 percent this year and 6.1 percent next year," Lommen told Xinhua in a recent interview.

This growth is largely driven by massive foreign direct investment in the country's Oyu Tolgoi copper-gold mine, estimated at 1.1 billion U.S. dollars in each year respectively, she explained.

"This is remarkable because the country was a in a deep economic crisis just a couple of years ago," the country director said.

The Oyu Tolgoi mine, located in a gobi desert 80 km north of Mongolia's border with China, is expected to produce 430,000 tons of copper and 425,000 ounces (about 12,050 kg) of gold annually for 20 years.

The contribution of mining to growth is projected to turn positive in 2018 and be higher in 2019, Lommen said, adding that the construction sector is to recover along with increasing mining activities, she said.

Domestic consumption will be supported by an increase in government expenditures, household incomes and consumer confidence gained from economic recovery, Lommen said.

The ADB projects an average inflation at 7.2 percent in 2018 and 7.0 percent in 2019, close to the government's target of 8.0 percent.

Lommen said that rising domestic demand, oil and global food prices as well as effects from a looser monetary policy last year has driven higher inflation in 2018.

Fiscal policy will remain expansionary in 2019, with rigorous tax reforms supporting small- and medium-sized enterprises.

Upbeat about Mongolian's long-term economic prospects, the ADB country director said:"large ongoing mining projects are expected to turn the balance of the fiscal budget and the balance of payments into surpluses in the years ahead."

Meanwhile, she stressed that for a mining-dependent economy like Mongolia, "more is needed" apart from well taping its mineral wealth.

In addition to economic diversification and higher productivity, more efforts should be made to ensure macroeconomic stability as well as sustainable and inclusive growth of its economy.

At the event, Chinese Culture Translation and Studies Support (CCTSS) representative Xu Baofeng said that a new China-Mongolian publishing platform created by the agreements will allow both sides to "discover, translate and publish each other's cultural products faster than ever."

Publishing houses from the two countries, including Mongolia's NEPKO and Guangming Publishing House and the mainland's China Children's Press & Publication Group, will release a number of new books as part of projects covered by the agreements.

NEPKO first established a cooperative relationship with CCTSS in 2015, going on to import a number of books, films and television projects, including the well-known series Empresses in the Palace, into Mongolia.

According to D. Boldbaatar, the president of Guangming Publishing House, Chinese literature, such as the Four Classic Novels and Tang Dynasty (618-907) poetry, are very popular in Mongolia.

At the event, former chairman of Mongolian National Television Sodnompil Myagmar told media that China and Mongolia should continue to strengthen film and television cooperation and that he hopes as Chinese cultural products enter the Mongolian market, more Mongolian films and TV programs can head to China.