Mongolia-US diplomatic ties 30th anniversary celebration wraps up www.montsame.mn

Ulaanbaatar /MONTSAME/ Celebration of the 30th anniversary of diplomatic relations between Mongolia and the United States was officially closed last week.

Egypt, Mongolia discuss enhancing economic bilateral cooperation www.dailynewsegypt.com

The executive chairperson of the General Authority for Investment and Free Zones (GAFI), Mona Zobaa, discussed with Mongolian state secretary of the Foreign Affairs Ministry, Davaasuren Damdinsuren, the activation of the recommendations issued by the first session of the Egyptian Mongolian Joint Committee, as well as the Executive Programme for Cultural, Scientific, and Technological Cooperation until 2018.

Mongolia's largest copper mine co. opens risk awareness center www.xinhuanet.com

ULAN BATOR, Feb. 6 (Xinhua) -- Mongolia's largest copper and gold mining company Oyu Tolgoi LLC has opened its Risk Demonstration Center here, local media reported on Tuesday.

IMF Reaches Staff-Level Agreement on the Third Review of Mongolia’s Extended Fund Facility www.imf.com

An International Monetary Fund (IMF) staff team led by Mr. Geoff Gottlieb visited Ulaanbaatar from January 24 to February 6, 2018 to conduct discussions on the third review of the three-year Extended Fund Facility (EFF) arrangement approved on May 24, 2017, in an amount equivalent to SDR314.5054 million, or about US$434.3 million (see Press Release No. 17/193 ).

At the conclusion of the visit, Mr. Gottlieb made the following statement:

“The economy is doing better than expected led by commodity exports and a pick-up in domestic demand. Growth is now projected at 5.0 percent in 2018 and 6.3 percent in 2019. The government’s adjustment program, supported by a $5.5 billion IMF-supported package, is showing positive results with the successful roll over of external bonds maturing in 2017 and 2018, a $1.8 billion increase in reserves, and a sharp reduction in government debt. These developments have resulted in a largely stable exchange rate, a fall in interest rates, and have greatly improved the government’s debt service schedule. Nevertheless, the growth outlook is subject to risks including a fall in external demand for commodities and higher fuel prices. In light of these risks and still limited buffers, fiscal and monetary policies should remain prudent.

“Macro-economic performance under the program has been positive, with all quantitative targets met by large margins. Fiscal results have been much better than expected, supported by stronger revenues and tight expenditure control. The overall fiscal deficit in 2017 was 1.9 percent of GDP compared to the target of 10.6 percent and 17 percent in 2016. The authorities’ program for 2018 envisages continued prudence in the deficit, while strengthening tax administration through new tax laws and improving budgetary controls on concessions, public investment projects and the operations of the Development Bank of Mongolia. The fiscal over-performance has provided some room for adapting program policies including a rise in civil service salaries in 2019 after several years of restraint.

“The authorities are moving ahead with the strengthening of the banking system and it is crucial that the key steps are implemented as planned. Important legal reforms including the Banking law and Bank of Mongolia law have been passed, a new deposit insurance law is expected shortly, and improvements to the regulatory and supervisory framework are under way. The results of the comprehensive Asset Quality Review have been communicated to banks individually and they are now in the process of preparing plans to reinforce, where needed, their capital adequacy. A law on bank recapitalization that delineates, in line with international best practice, when public funds can and should be used will be introduced in coming months. The authorities will also move ahead with putting in place an NPL resolution framework that will allow for more rapid improvement in banks’ balance sheets.

“The authorities and the team have reached staff-level agreement on the completion of the third review under the EFF arrangement, which is subject to the approval of the IMF Executive Board.

“The team thanks the authorities for their cooperation, constructive dialogue, and hospitality during its stay in Mongolia.”

Public trading sees an increase at the MSE www.gogo.mn

The Financial Regulatory Commission reported that public trading at the Mongolian Stock Exchange (MSE) increased rapidly in the past year.

Russian company to construct power bridge in Mongolia www.news.mn

Russia’s Federal Grid Company (FGC), an affiliate of the Rosset holding, has started work on a preliminary feasibility study for the Russia - Mongolia power bridge.

Nissan to invest $9 billion for EVs in China www.nhk.or.jp

Nissan Motor plans to invest about 9 billion dollars in China over the next 5 years to boost production and sales of electric vehicles.

Samsung heir freed from S Korea jail www.bbc.com

Samsung heir Lee Jae-yong has been freed from jail after a South Korean court suspended his five year jail term for bribing the country's ex-president.

Seoul High Court upheld parts of the conviction, but used its discretion to release the executive.

Prosecutors may challenge the decision in the country's supreme court.

The case gripped the public amid growing anger against the country's biggest companies, known as chaebols, and their influence on wider society.

In Monday's hearing, the court halved Lee's original sentence to two and a half years - and suspended the sentence for charges including bribery and embezzlement, meaning he does not have to serve any more prison time.

Despite his release, Lee plans to appeal against the remaining guilty verdicts, his lawyer said.

Scandal
Last year a lower court jailed Lee for corruption in a political scandal that ultimately brought down former President Park Geun-hye.

The Samsung Electronics vice chairman, who is also known as Jay Y Lee, had been convicted of a range of offences including bribery and embezzlement.

Lee, has effectively directed operations at the mobile phone and chip maker since his father, Lee Kun-hee, was incapacitated by a heart attack in 2014.

A dramatic turnaround in fortunes for Samsung scion Lee Jae-yong.

There were many outcomes that could have taken place today. But it would be fair to say that Lee walking out of jail was the one that was least likely.

Lee's release will be a major relief to the world's biggest smartphone maker and arguably the most important company in Corporate Korea.

Sources inside Samsung tell me that while the company hasn't seen its share price or profits affected in the short term from Lee's absence, long term it was going to struggle, especially with strategy and future direction.

And you can see the immediate impact of that from the pop in Samsung's share price this Monday - a sign that investors are looking forward to Lee back in the driving seat.

But there are also political consequences to this latest move.

South Korea's President Moon Jae-in won office by campaigning to clean up the powerful chaebol sector in Korea. But many will see the court ruling as effectively a get-out-of-jail card for Lee that goes against everything the president stood for.

What was he accused of?
The 49-year-old was accused of giving donations worth 41bn won ($37.7m; £26.7m) to non-profit foundations operated by Choi Soon-sil, a friend of South Korea's former President Park Geun-hye, in return for political favours.

Prosecutors said the donations were made to Ms Park's confidante to win government support for a big restructuring of Samsung that would strengthen Lee's control over Samsung Electronics.

But Lee's defence team said that the payments were signed off without his knowledge.

Lee admitted that the firm also gave a horse and money to help the equestrian career of Choi's daughter, Chung Yoo-ra, but denied seeking favours.

Bank of Mongolia to introduce G20 High Level Principles on Financial Consumer Protection www.montsame.mn

Ulaanbaatar /MONTSAME/ The Bank of Mongolia is introducing 11 principles of G20 High Level Principles on Financial Consumer Protection developed by Organization for Economic Co-operation and Development (OECD).

The UK Export Finance increases its assistance to Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ The UK Export Finance raised the volume of its trade-related assistance for Mongolia up to GBP 200 million. Thereby, the agency has admitted the financing with national currency, allowing transactions in MNT. This will enable the purchase of British products and services in MNT.