Major stock holder of Golomt Bank detained www.news.mn

On Monday night, Anti-Corruption Agents of the NPK arrested Mr. D. Bayasgalan, who is a major stockholder at the Golomt Bank. While other law enforcement officers searched his home and office, they took him to Detention Centre 461 where he was questioned in connection to the ongoing corruption case against D. Dorligiav.

Govt to reduce debt-to-GDP ratio by 8.1 percent in 2019 www.zgm.mn

Ministry of Finance Khurelbaatar Chimed has announced to cut debt-to-GDP ratio by 8.1 percentage point, to 55.3 percent this year.

Inner Mongolia's trade with BRI participating countries reach 69.93 billion yuan in 2018 www.eng.yidaiyilu.gov.cn

The import and export volume of north China's Inner Mongolia Autonomous Region reached 103.44 billion yuan (about 15.3 billion U.S. dollars) last year, a year-on-year increase of 9.9 percent, local authorities said Friday.

Mongolia fog envelops investor view www.atimes.com

Mongolia bond positions turned underweight in global emerging market strategies, as tens of thousands of Ulaanbaatar protesters in bitter winter cold called for lifting the “fog” in a play on words combining the initials of the Mongolian People’s Party (MPP) and the Democratic Party (DP). The action followed another spate of scandal revelations, including the parliamentary speaker selling government positions and insider abuse of a decades-old discount mortgage lending scheme, where connected officials and families were able to earn tenfold returns on cheap money.

With the popular discontent new splinter parties plan to enter parliamentary elections in 2020, and MPP Prime Minister Ukhnaagin Khurelsukh and his cabinet are likely to face another vote of confidence after an attempt narrowly missed in November, just a year after a predecessor was ousted for corruption. He claimed wealthy business executives were behind the move, but independent media commentators now urge resignation as the only route to safeguarding democracy. Russia and China, combining their infrastructure and raw materials interests in an “economic corridor,” also impose governance strains. Despite 6% gross domestic product growth, Mongolia’s trade surplus with them was down 35% to $925 million through the third quarter of last year.

In October, the International Monetary Fund (IMF) released another $35 million under its 3-year $430 million program anchoring $5.5 billion in overall bilateral and multilateral assistance, amid banking system and foreign reserve warnings. At the same time, Anglo-Australian miner Rio Tinto announced a delay in the $4.5 billion expansion of the Oyu Tolgoi gold and copper joint venture, where the state has a one-third stake. With mechanical challenges the first output may not come until late next year, and the operation could again be complicated by profit-sharing demands reflected in the country’s dozen-place drop in the latest World Bank Doing Business rankings. Metal and coal export reliance spotlight these flagship projects, with limited diversification into other industries like processed textiles from cashmere. The European Bank for Reconstruction and Development estimates almost $2 billion in earnings potential from garment added value, and is advising local herders and cooperatives.

Ratings agencies maintained their “B” grade, with 6% range growth again expected in 2019 on inflation just above that level. The budget ran a primary surplus last year, and the central bank adopted a tightening stance in September, after selling 10% of $3 billion in reserves to support the depreciating tugrik currency against the dollar. The IMF review cautioned on a return to 20% annual credit extension even with the institution of macro-prudential limits, such as maximum debt service ratios for consumer and mortgage loans. It noted that bad asset classification and recapitalization exercises were incomplete, and that the Financial Action Task Force continued to assign low anti-money laundering scores. Continued decline in world gold and copper prices and the Chinese shift to national coal production will widen the current account deficit, and fiscal loosening this year can pose medium-term public debt danger should the sovereign attempt to re-access markets under higher global interest rates, the IMF report implied.

In November, the IMF also fielded a mission in Uzbekistan, and flagged economic “overheating” with 5% growth and 15% inflation, as the current account surplus slid to a 3% of GDP deficit. Sudden price, trade and exchange rate liberalization under President Shavkat Mirzoyev sparked energy and water shortages, and agriculture suffered bad weather. Public wages were hiked 10% to compensate, as the central bank raised rates above 15% to fight government-directed credit expansion. Quasi-fiscal operations, especially through the Reconstruction and Development Fund, left a 2.5% deficit in 2018.

n 2019 tax reform is a priority to close the gap, including better collection of value-added and luxury levies. State enterprise restructuring and divestiture is also on the agenda, with possible sales on the 25 year old Tashkent Stock Exchange. With 125 listed companies, only 10 are liquid, with daily turnover under $100,000, according to frontier market specialists. Price-earnings ratios are under five times, and foreign investment in banks may soon be authorized, while public and private equity launches are in preparation through Hong Kong and London. Government leaders were in Germany in mid-January on a road show touting financial services, tourism, food processing and auto-making prospects, although specific deals were foggy.

China-Europe rail freight via Mongolia grows www.container-news.com

North China’s Inner Mongolia Autonomous Region saw a growth of over 30 percent in the number of inbound and outbound China-Europe freight trains, local authorities said Monday, Jan. 22.

Mongolia's foreign exchange reserves reach 3.5 bln USD by end of 2018 www.xinhuanet.com

ULAN BATOR, Jan. 22 (Xinhua) -- Mongolia's foreign exchange reserves rose to 3.5 billion U.S. dollars by the end of 2018, the highest level in six years, the president of the country's central bank said Tuesday.

Mongolian VAT Lottery winner to take MNT 225 million www.news.mn

In the VAT Lottery Draw held on January 20th, one person won the jackpot of MNT 225 million (over $84,000). Although it has not been confirmed, one source says that the winner is an elderly person from the Bayangol District of Ulaanbaatar. There were three other winners who each won MNT 10 million.

Experts suggest forwarding Treasury fund bill www.zgm.mn

According to the Minister of Mining and Heavy Industry Sumiyabazar Dolgorsuren, the development strategy of a stateowned firm Erdenes Mongol LLC will be altered with the ratification of the bill on Treasury Fund, which is currently in a political deadlock.

The BCM elects new board of directors and appoints the executive committee and working groups www.bcmongolia.org

ULAANBAATAR, Mongolia – The Business Council of Mongolia (BCM) held its Board Meeting
and appointed the members of the Executive Committee and its officers on 16 January 2019. The
Board also approved BCM’s “2019 organizational plan and working group structure”, and the key
meetings and events’ schedules.
In 2019, the BCM will strengthen its commitment to deliver enhanced value for the public, its
members and the employees by advocating economic freedom and property rights provided by the
Constitution of Mongolia and protecting, and promoting common lawful interests of members for a
fair, stable, and internationally competitive business environment.
Following the revision and approval of the BCM Mission Statement and Charter in 2018, the
following 15 members were elected to serve in the BCM Board for a period of two years starting in
2019.
2019 BCM Board of Directors and designations:
1. Bayanjargal Byambasaikhan, CEO, NovaTerra – Chairman
2. Randolph Koppa, Executive Vice Chairman, Trade Development Bank – Vice Chairman
3. Cameron McRae, Chairman, Kincora Copper – Vice Chairman
4. Badan Batbaatar, CEO, Sharyn Gol JSC – Treasurer
5. Gankhuu Purevjav, CEO, Erdenes Mongol
6. Tatsuya Hamada, Chairman and CEO, MobiCom Corporation
7. Dashdavaa Hulan, Executive Vice President, Tavan Bogd Group
8. Dugar Jargalsaikhan, Chairman, Gund Investment and TUSS Solutions
9. Jon Lyons, Vice President, Erdene Resources Development Corporation
10. Dul Munkhtushig, Country Director, Rio Tinto Mongolia
11. Enkhtsetseg Orchlon, CEO, Clean Energy Asia
12. Bayarsaikhan Solongoo, Co-Founder & Partner, Avinex Partners LLP
13. Enkhmunkh Temuulin, Head of IFI, PwC Mongolia
14. Armando Torres, CEO, Oyu Tolgoi
15. Tsevegmid Tumentsogt, Adviser to the Minister Mining and Heavy Industry
The BCM will operate with six working groups in 2019. The Board also appointed the chairs and vice
chairs of six working groups as follows.
 Banking, Finance and Capital Markets Working Group – R. Koppa (Chair), D. Hulan (Vice
Chair)
 Economic Freedom and Competitiveness Working Group – D. Jargalsaikhan (Chair),
E.Orchlon (Vice Chair)
 Energy, Infrastructure and Connectivity Working Group - E. Temuulin (Chair), T.
Tumentsogt (Vice Chair)
 Growth and Innovation Working Group - T. Hamada (Chair), J. Lyons (Vice Chair)
 Resources and Environment Working Group - A. Torres (Chair), P. Gankhuu (Vice Chair)
 Tax/Legal/Ethics Working Group - B. Solongoo (Chair), D. Munkhtushig (Vice Chair)
The BCM Board thank the members who have served on the Board through December 2018. The
Board also appointed Mr. Laurenz Melchers, Chairman of MSM Group, and past Chairman of BCM
as BCM Member Emeritus.
The BCM will hold its Monthly Meeting on 30 January 2019. The Meeting will feature updates on
key mining and infrastructure projects by Erdenes Mongol and its subsidiaries.

Mongolia beefs up fight against African swine fever www.xinhuanet.com

ULAN BATOR, Jan. 21 (Xinhua) -- The Mongolian authorities on Monday said the East Asian country has beefed up its fight against an outbreak of African swine fever.