Central bank updates financial statistics www.montsame.mn

Ulaanbaatar /MONTSAME/. Last week, the Bank of Mongolia provided update on the financial indicators of Mongolia and introduced the latest or 14th financial stability report released by the central bank jointly with other regulatory agencies.

As introduced by G.Dulguun, First Deputy Governor of the Bank of Mongolia, the financial stability report highlighted about the negative impact posed by the COVID-19 pandemic on the financial market stability of the country. Changes in the balance of payment, revenues and lending show the effect of the pandemic on Mongolia’s economy. In particular, the price and volume of export commodities have been dropping, leading to the decline in the export revenues.

In the second half of this year, the balance of payment deficit equaled to USD 679.2 million, and the government budget deficit decreased by 21.4 percent compared to the same period of last year and government budget balance showed a deficit of MNT 2.2 trillion.

Moreover, individuals and business entities who are suffering decline in their revenues due to the pandemic have also faced challenges to repay their loans, eventually posing risk to the financial industry. In order to stabilize the situation and stimulate economic growth, the central bank lowered the policy rate twice down to 9 percent and extended the maturity on consumer loans once up to 12 months for lenders experiencing difficulties, hence reducing the monthly loan repayments.

According to the report, in spite of the decline of the effectiveness in the banking industry as well as loan issuance rate, owner’s equity sufficiency and liquidity coverage ratio remain adequate. A study conducted by the National Statistics Office of Mongolia shows that economic and financial statistical indicators of all sectors, but banking sector, have been relatively stable.

The central bank also presented that money supply (M2) in Mongolia rose by 5.8 percent, reaching MNT 21.5 trillion, as of the first seven months of 2020, mostly influenced by foreign currency and Mongolian Tugrug savings.

Total loans in the banking industry reached MNT 17.2 trillion, as of the first seven months of 2020, which is made up of MNT 15.6 trillion of loans in Tugrug currency and MNT 1,6 trillion borrowings in foreign currencies.

Compared to the previous month, the total loan amount lowered by 0.3 percent, and nonperforming loans and overdue loans grew by MNT 24.6 billion and MNT 128 billion respectively, accounting for 11.3 percent and 6.6 percent of total loans. Average interest rate of new loans in Tugrug currency issued last month is 15.8 percent and 10.6 percent in foreign currencies. In July 2020, banks have issued mortgages to 1077 new borrowers, totaling MNT 74.8 billion. The weighted average interest rate of new mortgages equals to 10.7 percent. Average interest rate of savings in Tugrug currency is 10.5 percent and 3.2 percent in foreign currencies.

According to the central bank, total external debts of Mongolia reached USD 30.8 billion in the second quarter of 2020, climbing by USD 300 million since previous quarter. The growth reflects soft loans received from the Asian Development Bank, International Monetary Fund and the People’s Republic of China and an increase of market price of government-issued securities.

Thermal power plants to be built in 10 aimags in cooperation with ROK www.montsame.mn

Ulaanbaatar /MONTSAME/. Minister of Energy N.Tavinbekh has received Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Mongolia Lee Yeo-hong.

Mongolia confirms two more COVID-19 cases, 306 in total www.akipress.com

Two COVID-19 cases were confirmed in Mongolia today, the Ministry of Health said.

Citi receives China fund custody licence www.reuters.com

HONG KONG (Reuters) - A Citigroup (C.N) China unit has received a domestic fund custody licence from the China Securities Regulatory Commission, the bank said on Wednesday, the latest foreign financial firm to expand its presence in mainland China.

Samsung heir Jay Y. Lee indicted over controversial merger in South Korea www.cnn.com

Seoul (CNN Business)Samsung's de facto leader Lee Jae-yong may be headed back to prison.

Lee, the billionaire Samsung vice chairman and son of ailing chairman Lee Kun-hee, was indicted on Tuesday over a controversial 2015 merger that helped him tighten control over the company.
Seoul's Central District Prosecutors' Office said at a briefing that 11 executives from Samsung, including Lee, have been indicted on charges including illegal transactions, stock manipulation and perjury. Lee and the executives were indicted without detention, which means they weren't taken into custody.
Lawyers for Samsung denied the charges, saying in a statement that they are "one-sided claims by the investigation team that are not based on evidence and law, and by no means true."
Lee, who is also known as Jay Y. Lee, was previously found guilty of bribery and other corruption charges in 2017. He was sentenced to five years in prison, but walked free after less than a year when an appeals court threw out some of the charges and suspended his sentence.

That case was dubbed the "trial of the century," and it gripped South Korea for months. It was part of a huge influence-peddling scandal that brought down the government of former South Korean President Park Geun-hye.
Last August, South Korea's top court ordered a new trial for Lee, reigniting the bribery allegations and raising concerns that the technology scion could be sent back to prison. That case is still ongoing.
Prosecutors on Tuesday said the 2015 merger of Samsung C&T and Cheil Industries was undertaken in a manner that allegedly benefited Lee and allowed him to gain a tighter grip on Samsung Electronics, the crown jewel of his family's sprawling conglomerate.
During the merger, prosecutors allege that Lee and his executives illegally spread false information, conducted illegal lobbying and manipulated stock prices.
But Samsung's lawyers say that interrogations and previous related cases have confirmed that the merger was done in compliance with government regulations.
The latest investigation was conducted "with the aim of prosecuting Lee Jae-yong from the beginning, rather than seeking the actual truth according to evidence," the lawyers said.

Samsung is South Korea's biggest conglomerate. Its combined businesses are estimated to account for around 15% of the country's entire economy. Samsung Electronics, the biggest part of the group, is one of the world's leading smartphone makers and a vital supplier of memory chips and display screens.
Shares in Samsung Electronics ended the day up 0.4%.
Lee has been the de facto leader of Samsung since his father was left incapacitated by a heart attack in 2014.
Earlier this year, the billionaire said that he would not be handing the management of Samsung Group over to his children. He also apologized for shortcomings in his leadership of the company, acknowledging that Samsung has "failed, at times, to meet society's expectations."

Rare rallies in China over Mongolian language curb www.bbc.com

Ethnic Mongolians in northern China have staged rare rallies against measures to reduce teaching in the Mongolian language in favour of Chinese.

As schools began a new term on Tuesday some parents held children back in protest at the policy.

Under the rules, three core subjects in Inner Mongolia will gradually be taught in Mandarin, China's official language.

Many ethnic Mongolians view the move as a threat to their cultural identity.

Large crowds of students and parents were seen protesting against the change in demonstrations that broke out over the weekend across several cities.

"Our language is Mongolian, and our homeland is Mongolia forever! Our mother tongue is Mongolian, and we will die for our mother tongue!" shouted students at one recent protest, reported Radio Free Asia, a US government-funded broadcaster.

Why are people demonstrating?
Starting this month, according to the new policy, schools will gradually shift the language of instruction in three subjects - politics, history, and language and literature - from Mongolian to Mandarin across China's Inner Mongolia autonomous region, home to an ethnic Mongol minority.

The Southern Mongolian Human Rights Information Center, a New York-based activist group, described angry scenes across the region as many parents only learned about the shift in policy as schools were set to reopen.

It said there was a tense confrontation at one boarding school as hundreds of parents demanded the release of their children, who had returned early.

"Hundreds of riot police poured to the scene, preventing the parents from accessing the school dormitories. Following hours of standoff, parents finally broke through the police barricade and proceeded to pick up their children," the group said in a statement.

Authorities have warned people in Inner Mongolia against speaking out on social media. Posts on the subject on Weibo, China's Twitter-like platform, have been removed.

But concerns over the directive are still running high with some parents keeping students at home.

On Tuesday staff at a school in Naiman county told the BBC that only around 40 students had registered for the semester in place of the usual 1,000. Some subsequently changed their minds, and only some 10 remained.

They said teachers had been sent out for family visits to convince parents to send their children back to school. But parents, they said, were worried the language change would harm the future of their own language.

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It has been an unusual display of widespread dissent in the remote grasslands region bordering Mongolia and Russia.

A 32-year-old herder from Xilingol League told AFP he was concerned children would lose fluency in their mother tongue.

"Almost every Mongolian in Inner Mongolia is opposed to the revised curriculum," said the man, who gave his surname as Hu.

Why has China brought in the new policy?
Critics say the Chinese government has been accelerating its push to assimilate minorities despite coming under widespread international criticism for its treatment of minority groups including the mostly Muslim Uighurs in western Xinjiang.

In a statement published on Friday, in an apparent response to growing discontent about the policy, the regional authority in Inner Mongolia referenced the importance of "strengthening national language education in ethnic areas".

The new directive has also seen some people protest in the capital of neighbouring Mongolia, while others expressed their fears for the region from exile.

Speaking to the BBC from Germany, Temtsiltu Shobtsood, chairman of the Inner Mongolian People's Party, an exile group, accused China of "trying to suppress" the Mongolian language.

"The whole world is talking about human rights, but we are not visible enough," he said, adding that the imposition of Mandarin and the majority Han Chinese culture on minorities in Inner Mongolia was a form of "cultural genocide".

New academic year begins across Mongolia amid COVID-19 pandemic www.xinhuanet.com

The new 2020-2021 academic year of all kindergartens and general educational schools across Mongolia started on Tuesday after months-long closure amid the COVID-19 pandemic.

Mongolia requests to join International Solar Alliance www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Energy N.Tavinbekh met with Ambassador Extraordinary and Plenipotentiary of the Republic of India to Mongolia M.P.Singh.

40 firetrucks delivered from Belarus www.montsame.mn

Ulaanbaatar /MONTSAME/. In the framework of the General Agreement on Export Loan between the Governments of Mongolia and the Republic of Belarus, a project is being implemented on enhancing the capacity of equipment for combating disasters.

Russia ready to provide Mongolia with coronavirus vaccine if trials prove successful www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Health T.Munkhsaikhan met with Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Mongolia I.K.Azizov to exchange views on cooperation between the two countries in healthcare sector.