BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 409 – January 8, 2016

THIS WEEK BCM DELIVERS A DOUBLE ISSUE WITH STORIES FROM LATE DECEMBER.

BCM NewsWire provides short summaries of news collected from around the world. Each article is

kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full

article.

NEWS HIGHLIGHTS:

Business:

Japanese firm may join Erdenes TT investment consortium;

Hyosung set to build electrical grids;

Mongolia Holdings, Monroad merge;

Moncement Plant investment agreement inked;

Chinese company launches power plant construction;

Golomt ready to accept 10% down payments for mortgages;

Energy Resource LLC lays off 200 employees;

Shearman & Sterling advises on mega Oyu Tolgoi mining project In Mongolia;

TerraCom to tighten finances as Mongolian coal plans unfold;

Lithuania's FL Technics to represent Future Metals in Baltics, Mongolia;

Hunnu Air launches direct flights to Bayan-Ulgii;

Mongol Shuudan ready for IPO;

3 die in gas explosion near UB;

Environmental groups sues gold miner in Uvurkhangai;

EBRD supports Mongolia’s micro and small businesses with tugrug loans;

Mongolian company, FAO target food security;

MIK raises MNT37.3 bn in IPO;

Printing House to become Galleria Ulaanbaatar;

Capital Bank robbed on Christmas Eve;

Erdene appoints strategic advisor;

Ulaanbaatar Investment 2016 business forum on 20 January;

Noble Group downgraded to junk status by Moody’s.

Economy:

Mongol Bank: currency swaps, 1-week bills, T-bills;

Sales Managers Index: December 2015;

Inflation to fall to 1% by 2016, says Mongol Bank;

Mongol Bank gold buying up 20%;

Coal exports fall 25%;

Mutton, beef prices in free fall;

Raw hide export permitted for 2016;

Hay trade with China launches;

2016 is the “Year of the Consumer”;

VAT refunds for 2016;

Health insurance fees roll out;

With SOE privatization plans on the horizon, SPC shuts down;

Each child to receive MNT 20,000;

Hay provisions made to combat “white dzud”;

Government to launch website for land procurement;

Government forces locally made content on broadcasters' plates;

State child supervision program receives 2,000 applicants;

Mongolia reaches out to Mongols abroad;

890 homeless in Mongolia;

Mercy Corps to teach rural Mongolia to better adapt and survive;

Driver's violation score system to be followed starting February 1;

Mongolia Year in Review 2015;

Buyant Ukhaa-2 affordable housing complex opens;

UB's ground also poisoned by coal burning;

BRT lane construction to launch in 2017;

Car tows launched for illegal parking;

Solving Ulaanbaatar's health problems;

Fighting to breathe in Mongolia;

The kingdom of the Mongol Bank – EDITORIAL.

Politics:

Election bill passes;

Independent MPs balk at Election Law;

Speaker vows to annul Constitutional Court decision stopping new mortgages;

Government threatens to shut down slanderous media;

Tax amnesty law extended to Feb.;

Labor Law amendment targets small business to boost employment;

Parliament to vote on new Arbitration Law;

Minister submits bill on tax exemption for wheat seed;

Government to consolidate stats, registration offices;

Independent MP S. Ganbaatar joins KhUN political party;

Mongol Bank VP resigns;

Gutain Davaa gold-mining license is legal, says mining minister;

Australia appoints first resident ambassador;

Italian Embassy to be established in UB;

Mongolia and Hong Kong to ink agreement on criminal transfers;

Activists seek better conditions for North Korean migrant laborers;

Battulga, Gansukh under investigation;

Minister Shiilegdamba is released on bail;

Nicolas Cage returns stolen dinosaur skull to Mongolia;

Border troops catch arms smuggler;

One dead in military helicopter crash;

Battulga leads Zindaa.mn's poll for top-10 politicians;

Hakuho breaks Guinness World Record;

Draft Long-Term Sustainable Development Mission of Mongolia 2016-2030 – REPORT;

Mongolia’s flagging economy stalls political progress – EDITORIAL;

Commemorating the 60 years of diplomatic relations of India and Mongolia – EDITORIAL.

*Click on titles above to link to articles.

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BUSINESS

JAPANESE FIRM MAY JOIN ERDENES TT INVESTMENT CONSORTIUM

A new investment plan for state-owned miner Erdenes Tavan Tolgoi LLC from Parliament would see

participation from one of Mongolia's Third Neighbors, according the head of the working group

drafting the deal. “A third neighbor should be included in the project,” said MP L. Erdenechimeg

about including a company from one of Mongolia's strategic partners to help balance relations with

China and Russia, such as Japan. Mongolia would retain 51 percent control of the company, in

addition to the railway, she said.

“The Japanese have expressed their interest to participate in the project and we will support their

involvement,” said Erdenechimeg.

Source: Udriin Sonin

HYOSUNG SET TO BUILD ELECTRICAL GRIDS

Hyosung Corp. has become South Korea’s first company to establish an electrical grid in Mongolia,

which shows more than 10 percent growth every year. The company signed a KRW142 billion

(USD120.29 million) memorandum of understanding with the Mongolian government at Shangri-La

Hotel in Ulaanbaatar City, Mongolia, on 16 December. It has agreed to set up two 220 kilovolt

substations, transmission lines approximately 315 kilometer-long, and 975 transmission towers.

The Mongolian electricity market is expected to grow to a capacity of 3,090 MW in total by 2030.

The company will complete the construction of transmission lines that cross from Undurkhaan in

eastern Mongolia to Choybalsan and two substations by as early as 2018, contributing to power

industry development and power supply stabilization in Mongolia.

Source: Junior Mining Network

MONGOLIA HOLDINGS, MONROAD MERGE

Mongolia Holdings Inc. has taken over a company focused on the development of infrastructure in

Mongolia as it carves out a foothold in the sector with large-scale projects such as China's so-called

One Belt, One Road international highway on the horizon. Mongolia Holdings on 29 December said it

had entered into a merger that would see Monroad LLC become a wholly owned subsidiary. “We

plan to bring Monroad's facilities, equipment, highly-trained staff, equipment maintenance

capabilities, logistics, market knowledge, reputation and enthusiasm to the deployment and build-

out of Hertz Equipment Rental operations throughout Mongolia,” said Tengis Garamgaibaatar, CEO

of Monroad.

Monroad's construction services include the construction and maintenance of roads, bridges,

railroad lines, drainage work, earthwork, flood protection dams, and heavy equipment rental for

clients such as Mongolian government and Oyu Tolgoi LLC.

Source: Mongolia Holdings Inc.

MONCEMENT PLANT INVESTMENT AGREEMENT INKED

Monpoliment LLC is picking up an abandoned project to build a dry cement facility as Mongolia looks

to assist companies that aim to domestically produce import replacements for construction

materials. Monpoliment LLC has signed an investment agreement with government ministries to

invest MNT48.8 billion into the MNT512.2 billion Moncement LLC factory. Delegations from various

ministries have joined a working group to build a facility able produce one million tons of cement

and 100,000 tons of lime at the Senjit Khudag limestone deposit at Urgun Soum, Dornogobi Aimag.

The project has already received MNT463.4 billion of investment. Monpoliment has also agreed to

finance the construction of a kindergarten, and a 220-unit apartment complex and shopping center.

Source: Mongolia.GoGo.mn

CHINESE COMPANY LAUNCHES POWER PLANT CONSTRUCTION

A ground-breaking ceremony was held on 23 December for the construction of a 700-megawatt

power plant led by China Nuclear Industry 22 Corp. over the next three and half years. The

government has enlisted the help of Chinese companies for its plans to expand the country's heating

and energy generation capacities, including power plants at the Booroljuut and Tavan Tolgoi coal

mine as well as a hydro-power plant at the Eg river.

Chinese companies led development of the recently commissioned Amgalan Power Plant and an

extension to Combined Heat and Power Plant No. 3. Baganuur Power LLC last April signed a build-

operate-transfer concession agreement with the government for a facility.

Source: Montsame

GOLOMT READY TO ACCEPT 10% DOWN PAYMENTS FOR MORTGAGES

Golomt Bank is leading the pack in the banking sector's moves to begin accepting 10 percent down

payments for the state-sponsored 8 percent mortgage program. The Chimed Saikhanbileg

government has tried keeping the housing sector lively by making eased terms for mortgage

lending, despite the new risks they open up to defaults. “We think, not only Golomt but also other

banks could profit from it as well,” said Minister Z. Bayanselenge. He said Golomt had agreed to

terms to begin accept the reduced payments—down from 30 percent—after discussing details with

the construction companies and other groups involved in the deal making.

“The commercial banks should take a resolute decision now,” said Bayanselenge. “The loan taken

from the banks is getting risky and unreliable for construction companies” while they delay, he

added.

Source: Udriin Sonin

ENERGY RESOURCE LLC LAYS OFF 200 EMPLOYEES

The largest coal miner owned by Mongolians laid off 200 employees amid struggles in the coal

industry. The mining unit for the Ukhaa Khudag coal deposit owned by Hong Kong-listed Mongolian

Mining Corp. made the redundancies after months of suspended operations since 1 July. According

to the head of the company's trade union, S. Ganbold, the company failed to pay compensation to

employees during the downtime.

Source: Unuudur

SHEARMAN & STERLING ADVISES ON MEGA OYU TOLGOI MINING PROJECT IN MONGOLIA

Shearman & Sterling represented Erdenes Oyu Tolgoi LLC, a Mongolian state owned company, in the

USD5.4 billion project financing for the massive Oyu Tolgoi mining project in Mongolia. Shearman &

Stearling advised Erdenes OT on various matters in relation to its role as a shareholder in the

project financing for the deal. It also analyzed the relevant project financing documents to ensure

that they comply with the “Oyu Tolgoi Underground Mine Development and Financing Plan,” which

was signed in Dubai in May 2005 among the Oyu Tolgoi shareholders and the Government of

Mongolia.

The financial closing is expected to occur in early 2016. The financing ensures that the

development of the underground mine will proceed quickly.

Source: Conventus Law

TERRACOM TO TIGHTEN FINANCES AS MONGOLIAN COAL PLANS UNFOLD

TerraCom Ltd. has advanced two debt restructuring options during a balance sheet recalibration

process expected to secure funding as the company’s Baruun Noyon Uul (BNU) project aims to

become one of the largest and highest quality coking coal producers in Mongolia. The company

formerly known as Guildford Coal has recently confirmed the ongoing support of its major financial

backers, including the execution of a term sheet with OCP and continued discussions with Noble

Group regarding a USD115 million five year interest-only bond. Plans are also developing for a

strategic placement of AUD7 million (USD4.89 million) in the company by SPG Holdings.

Meanwhile, TerraCom is considering the issue of shares to SPG associate Morning Crest Capital

Management pursuant to the conversion of convertible notes first issued by the company in

December 2013. These financing plans are expected to support the company’s Mongolian subsidiary

Terra Energy, which was granted a new exploration license last month.

Source: Proactive Investors

LITHUANIA'S FL TECHNICS TO REPRESENT FUTURE METALS IN BALTICS, MONGOLIA

FL Technics, an aircraft maintenance, repair and overhaul (MRO) service company, is expanding its

partnership with Future Metals and will from now on represent the US-based supplier of aerospace

quality metals and other materials in the Baltic countries and Mongolia, reports LETA/BNS. FL

Technics, which is part of the Lithuanian-owned, Warsaw-listed aviation group Avia Solutions Group

(ASG), will offer a broad range of Future Metals' products, such as metal sheets, tubes, bars and

safety wires, to customers in Lithuania, Latvia, Estonia and Mongolia, ASG said in a press release on

31 December.

Source: Baltic Course

HUNNU AIR LAUNCHES DIRECT FLIGHTS TO BAYAN-ULGII

Hunnu Air LLC will open a new direct flight between Ulaanbaatar and Bayan-Ulgii beginning 4

February. Flights will run Monday through Thursday.

Source: Mongolia.GoGo.mn

MONGOL SHUUDAN READY FOR IPO

Mongolia is ready to to put up 34 percent of state-owned Mongol Shuudan LLC (Mongol Post) for sale

on the Mongolia Stock Exchange. “The company is making a good profit that its volume of property

has increased annually by about 15 percent reaching MNT 16 billion 150 million,” said G. Munkh-

Erdene, an analyst at the underwriting firm, Gauli UtsK. He said bonds would start at a price of

MNT185 per share, for a total of 33.86 million shares.

The money raised from the offering will be used to launch a project aimed at installing logistical

infrastructure at the Zamyn-Uud free trade zone,” said Munkh-Erdene.

Source: Udriin Sonin

3 DIE IN GAS EXPLOSION NEAR UB

Three people are dead and eight injured from a gas explosion at the Grand Rover LLC gas facility on

18 December. Three of the eight injured have left the hospital while the plant's official

commissioning is on delay. The facility was scheduled to open on 19 December.

Source: Unuudur

ENVIRONMENTAL GROUPS SUES GOLD MINER IN UVURKHANGAI

An environmental group is suing a gold miner with operations in Uvurkhangai Aimag, claiming

damage to the environment. The Mongolian Union of River and Lakes has filed a lawsuit against AUM

LLC for alleged damages worth MNT32.7 billion at a mine in Uyanga Soum [Source does not includes

specifics of the alleged damage]. The NGO is also requesting land rehabilitation at the site within a

year's time.

The lawsuit has been filed with the civil courts of Ulaanbaatar's Bayanzurkh, Sukhbaatar, Chingeltei

districts.

Source: Zuunii Medee

EBRD SUPPORTS MONGOLIA’S MICRO AND SMALL BUSINESSES WITH TUGRUG LOANS

Mongolians are very attached to their long history, and many old traditions are still very alive.

Gulmaira Akim is so proud of Mongolia's folklore that she created a business out of it. Today Akim

employs dozens of people, mostly women, in the rural Nalaikh province where her embroidering

workshop is based. She is the owner of one of the thousands of micro business in Mongolia that can

improve their companies at zero foreign-exchange risks with a loan in tugrug.

This European Bank for Reconstruction and Development (EBRD) Local Currency Programme in the

Early Transition Countries (ETCs) is supported by the Swiss State Secretariat for Economic Affairs

SECO, the U.S. Treasury and the donors of the ETC Fund. Through the program, partner banks have

an opportunity not only to reach out to under-served markets but also to develop the skills required

to manage foreign exchange risk.

Source: EBRD

MONGOLIAN COMPANY, FAO TARGET FOOD SECURITY

The Mongolian food producer Taij Group has committed to working with the United Nation's Food

and Agriculture Organization (FAO) to tackle food security issues in the country. Parliament Speaker

Zandaakhuu Enkhbold Wednesday received a delegation led by Kevin Gallagher, the deputy

permanent representative of the FAO to Mongolia to discuss a strategy on tackling global food

security and how Mongolia can expand its exports of meat products. One out of eight people in

Mongolia is suffering from food shortages, Gallagher said. "Mongolia is required to reserve

strategically important foods such as meat for up to five years in case of the winter worsening.”

During the meeting, Taij's general director, L. Ganpurev, said his company would work with the FAO

and several meat processing companies to deliver food during times of need.

Source: Montsame

MIK RAISES MNT37.3 BN IN IPO

MIK Holdings JSC raised MNT37.3 billion from the sale of about 3.1 million shares in the Mongolia

Stock Exchange's one and only initial public offering in 2015.

Source: Mongolia Stock Exchange

PRINTING HOUSE TO BECOME “GALLERIA ULAANBAATAR”

Tavan Bogd Group has announced plans to establish a city museum piece of land acquired with a

prime location just across from the Government Palace at auction amid some controversy. Tavan

Bogd Group won the building, set in a prime location just across from the Government Palace, after

a Iraqi-born investor with Mongolian citizenship dropped out in the face of outcry by local residents

that was somewhat racially charged.

The new structure built there will not be any taller than the Government Palace, in contrast to

controversial plans by the previous investor to build a 50-story building. Tavan Bogd said the new

building would attempt to replicate the old-fashioned look of the print house that once stood there

while housing a flagship Gobi Cashmere store, bank, restaurants, a car showroom and clothing

boutiques. He added that it would develop an 18-floor building directly behind the building, where

there is additional land it owns.

Source: News.mn

CAPITAL BANK ROBBED ON CHRISTMAS EVE

A branch of Capital Bank LLC in the Khan-Uul District of Ulaanbaatar was robbed on 24 December,

the bank stated. The bank declined to provide details, but unnamed sources have reported that

suspects between 25 and 30 years old stole MNT14 million from the bank.

Source: Mongolia.GoGo.mn

ERDENE APPOINTS STRATEGIC ADVISOR

Erdene Resource Development Corp. has appointed David Mosher as a strategic advisor, the junior

explorer said in a 5 January statement. Mosher is a mining executive with over 35 years of

international experience. From 1992 to 2008, he was president and chief executive officer of High

River Gold Mines Ltd., a TSX-listed company involved in the exploration, development and

production of gold in Canada, Africa and Russia. He has served on many boards including Cambior

Inc. and earlier in his career was project manager for Pancontinental Mining Ltd.

“With David's thirty-five years of executive level experience in mine building, project management

in foreign jurisdictions and company building, he is extremely well qualified to help guide the

Company both technically and professionally as we advance our core projects,” said said Peter

Akerley, Erdene's president and chief executive officer.

Source: Erdene Resource Development Corp.

ULAANBAATAR INVESTMENT 2016 BUSINESS FORUM ON 20 JANUARY

Ulaanbaatar's Governor's Office and Ulaanbaatar Chamber of Commerce will jointly host the

Ulaanbaatar Investment 2016 business forum on 20 January. This year is the forum's second to be

held, with the aim of supporting the economic development of the capital city, developing

partnerships between public and private groups and protecting business interests. Over 1,000

participants will be in attendance, including members of Parliament, the Cabinet Secretariat and

City Council.

Source: Mongolia.GoGo.mn

NOBLE GROUP DOWNGRADED TO JUNK STATUS BY MOODY’S

Noble Group, the commodity trader fighting allegations of aggressive accounting, suffered another

blow on Tuesday when its credit rating was cut to junk status by Moody’s because of concerns about

the company’s ability to refinance debts. Nobel Group has a position in Mongolia through a joint

venture deal with Aspire Mining Ltd. The downgrade announced by the rating agency could have

significant repercussions on Noble’s core trading business, which depends on access to cheap credit

to compete with larger rivals such as Glencore, Trafigura and Vitol. “The downgrade of Noble’s

ratings reflects Moody’s concerns over the company’s liquidity,” said Joe Morrison of Moody’s.'

In response, Noble Group posted a statement saying, “Whilst we respect Moody’s decision, we are

of the firm view that, once the just-announced Noble Agri deal closes, our rating metrics will

substantially exceed those required of an investment grade credit.”

Source: Financial Times

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ECONOMY

MONGOL BANK: CURRENCY SWAPS, 1-WEEK BILLS, T-BILLS

The Bank of Mongolia on 7 January sold USD10.7 million to central banks at currency auction (out of

USD23.2 million and CNY3.5 million in bids) for a closing rate of MNT1998.49. Also that day, it

accepted tugrug swaps with commercial banks for an equivalent of USD77.34 million.

The Bank of Mongolia on 6 January issued one-week bills worth MNT168.4 billion at a weighted

interest rate of 13 percent. Also that day, the central bank received MNT25 billion in bids for 28-

week treasury bills with a face value of MNT13.5 billion that were sold at a discounted price and

with a weighted average yield of 14.933 percent. It canceled the auction of three-year treasury bills

with a face value of MNT15 billion after it failing to receive bids.

Source: Bank of Mongolia

SALES MANAGERS INDEX: DECEMBER 2015

The World Economics Headline Sales Managers’ Index (SMI) recorded further decline in business

confidence in December following the previous nine-month low. The Business Confidence Index fell

to 27.9 from 31.0 on the previous month, the weakest level on record. Derived from an average of

the business confidence, market growth, product sales, prices charged and staffing indicators, an

index above 50 indicates growth, while an index below 50 indicates contraction. The SMI registered

32.4 in December, down from 34.1 in November, the lowest level in the survey history.

December’s data also saw a steeper drop in prices charged, with the Prices Charged Index posting

36.1, down from 38.6 in November. Moreover, sales managers indicated another decline in

employment levels during December thereby taking the current sequence of job shedding to twenty

months. The Staffing Index signaled the fastest rate of contraction since May and suggested that the

labor market situation continued to deteriorate.

Source: WorldEconomics.com

INFLATION TO FALL TO 1% BY 2016, SAYS MONGOL BANK

The Bank of Mongolia has put out the bold prediction that inflation will fall to 1 percent next year

on the back of falling demand for consumer goods and slowed economic growth. Inflation clocked in

at 2.9 percent nationwide for 2015, falling eight percentage points from the year before. The

slowed growth in Mongolia that has resulted from China's slowest growth in decades last year and a

decline in key commodity goods is a key factor, said the Bank of Mongolia. A fall in meat prices

after herders rushed to cull their herds in the expectations of tough winter conditions this year also

Inflation was 12.3 percent and 14 percent in 2011 and 2012, respectively, during the years of peak

growth. Inflation is expected to pick up in 2017, however, with more investment expected to hit

key mining and infrastructure projects that are expected to rejuvenate the economy some.

Source: UB Post

MONGOL BANK GOLD BUYING UP 20%

The Bank of Mongolia bought up 20 percent more gold last year from the year before as it seeks to

bolster the currency with expanded reserves. The central bank has been buying up as much gold as

producers can sell while taxes remain low from a change in the tax code in 2012 that cut taxes and

royalties from up to 10 percent to a flat 2.5 percent, as long as they sell the Bank of Mongolia. “We

are expecting that it will reach to 15-16 tons by end of the year,” said P. Sukhbaatar, director of

the banknote and precious metals at the central bank.

“Because of start of new projects such as Gatsuurt, we are expected 20-25 tons of gold purchase in

2016,” he said.

Source: Zuunii Medee

COAL EXPORTS FALL 25%

Coal shipments to China in the year-to December fell off by a quarter from 2014 figures. Mongolia

shipped 5.5 million tons of coal to China via the Gashuun Sukhait border point during the first

eleven months of 2015, or 50 percent less than the previous year. This is partially due to truck

drivers' response to road tolls of taking a detour to the eastern border point, Shivee Khuren, but

also because of falling demand from China.

Last year, the number of coal transportation companies operating at the Gants Mod border-crossing

station fell from 19 to 15.

Source: News.mn

MUTTON, BEEF PRICES IN FREE FALL

Some meat prices have fallen by more than a quarter while the market is flooded with supply. The

average price of mutton with the bone fell 33.4 percent from the beginning of the year at the end

of December, to MNT3,9000 a kilogram, while the price of boned beef fell 25.6 percent to

MNT5,515. The lowest prices for beef and mutton were found at the Bayanzurkh and Kharkhorin

food markets, for MNT5,000 and 3,500 a kilogram, respectively.

Many herders have culled down their herds in the expectation of a harsh winter with extremely low

temperatures, known as a dzud. Meanwhile, livestock numbers in Mongolia continue to grow.

According to preliminary 2015 livestock census data, Mongolia had about 56 million heads of

livestock, showing a 7.6 percent increase from the year before. Sheep and goats lead the country in

numbers, representing 44.6 percent and 42.1 percent, respectively. Uvurkhangai Aimag reported

the largest population of livestock (4.5 million).

Source: Montsame, 2

2016 IS THE “YEAR OF THE CONSUMER”

The Chimed Saikhanbileg government has labeled 2016 the “Year for Consumers,” with the goal of

putting consumers first in the market and trade. The slogan is a reflection of the guidelines set up

by the U.N. General Assembly last September for bolstering consumer protections globally, and also

comes as Mongolia prepares to host hundreds of foreign delegates and heads of state for the Asia-

Europe Meeting (ASEM) this coming summer.

To reach those goals, plans for this year include amendments to the Law on Consumer Protections,

and new legislation aimed at the rights of consumers. The government also plans to adopt a system

dedicated to ensuring the rights of consumers as well as launching studies as to where

improvements are needed.

Source: News.mn, Montsame

VAT REFUNDS FOR 2016

Hold onto your receipts because this year the government will be refunding 2 percent of tax it

collects. Passed by Parliament last July, a new tax code kicks off this year that will return to

shopper 2 percent of the total value-added tax collected from shoppers. To collect the return,

taxpayers will have to sign up to the website ebarimt.mn where they will receive a personal ID

number and can register their receipts.

The government is taking certain measures to makes sure everyone involved is doing their part. Any

stores shown to issue receipts without the correct information to register them will receive a fine

worth 2 percent of their total income [Source does not specify or what time period -ed], beginning

16 January. On 17 January, the government will hold a lottery worth MNT100 million, as well as

additional prizes. The winner will be selected from one of the receipts registered on the website.

Source: News.mn, 2, Mongolia.GoGo.mn

HEALTH INSURANCE FEES ROLL OUT

People in Mongolia this year will be paying at least half of their share for health insurance after

government revenues fell well short of expectations in 2015. The employed above 18 years old will

pay MNT1,920 each toward the health insurance fund. The self-employed (including herders),

foreign workers and students will pay MNT3,840. Everyone who pays into the system is entitled to

up to MNT1.8 million in health care provisions a year. This amount may also be transfered toward

someone else's care, with given consent.

This year's budget has projected MNT308.3 billion to be collected for the Health Insurance Fund, or

22.9 percent more than last year, out of a total budget of MNT12.1 billion.

Source: Montsame, News.mn

EACH CHILD TO RECEIVE MNT20,000

Allowances of MNT20,000 each will be delivered to 823,000 children thanks to a new provision

confirmed by Parliament. Total funds worth MNT 144 billion will be sent to families. “MNT 20,000

per child is Mongolian policy, which aims to ensure many healthy young Mongolians,” said President

Tsakhia Elbegdorj on Twitter about the policy.

Source: News.mn

HAY PROVISIONS MADE TO COMBAT 'WHITE DZUD'

Ulaanbaatar will deliver 6,560 tons of hay to help out herders for what is turning out to be a

difficult winter with extremely cold temperatures and heavy snow fall. Heavy snowfall has been

reported from 50 counties throughout the country. Hay provisions were delivered from 16 to 28

December to 95 counties around the country, said M. Enkh-Amar, secretary of the State Special

Commission (SSC). In addition to the over 6,000 tons of hay handed out, 2,678 tons is being sold at a

50 percent discount.

The Saikhanbileg is acting quickly to prevent a disaster of thousands of animal deaths from the

heavy snowfall, known in Mongolia as a white dzud. The weather conditions can threaten herders

livelihoods if the cold and difficulty in reaching grass kill many of their livestock.

Source: News.mn

GOVERNMENT TO LAUNCH WEBSITE FOR LAND PROCUREMENT

An online hub for procuring land and tracking ownership will soon launch, according to a website

run by the Agency on Land Affairs, Geodesy and Cartography. “Under this online market, any citizen

and organization (from any country) can obtain land via the Internet without any difficulty,”

Source: News.mn

GOVERNMENT FORCES LOCALLY MADE CONTENT ON BROADCASTERS

Local programming will get the spotlight in Mongolia this year thanks to new legislation passed that

forces broadcasters to fill up a majority of their time slots with Mongolia-made entertainment. At

least 60 percent of content on Mongolia's national public radio and televisions broadcasts must be

locally produced as well as 50 percent on private broadcasters, said the legislation's sponsor, MP Ts.

Oyungerel, in a 28 December press conference, following the passage of two amendments to the

Law on Culture. For children's programing, the public and private broadcasters must air at least 70

percent and 60 percent local content, according to the law.

The far-reaching law also impacts Mongolia's cinema and IPTV services, which now are required to

provide at least 50 percent media produced at home.

Source: Montsame

STATE CHILD SUPERVISION PROGRAM RECEIVES 2,000 APPLICANTS

Parents have registered 2,000 children to receive government supervision with the new Child Care

Law that took effect on 1 January. The new public services provides day-care services for families

unable to to send their children to kindergarten because of costs or lack of nearby availability. Sixty

percent of applicants live in Mongolia's rural provinces, with the remaining 40 percent residing in

Ulaanbaatar.

The government plans to put up to 59,000 children in the system, including 10,000 in its first phase.

For this initial phase, the program has been budgeted MNT10.8 billion

Source: News.mn

MONGOLIA REACHES OUT TO MONGOLS ABROAD

Mongolia is launch a new program aimed reaching out to Mongolians living abroad and utilizing their

skills to assist in the country's development. The program will open a dialogue with citizens living

abroad to learn what challenges they face and identify avenues they can continue to help their

home country. That includes the so-called “brain circulation” principal—as opposed to the “brain

drain” syndrome seen where developing countries' best and brightest take their talents to Western

developed countries—to utilize their skill sets here.

The program will roll out with a second initiative, called the World Mongolians program, to focus on

promoting Mongolia's role in global affairs, said Foreign Affairs Minister D. Gankhuyag in a 30

December press conference. Mongolia has reached out to countries that many around the world has

cut off ties with, including Iran and North Korea, while President Tsakhia Elbegdorj has opened the

door to Mongolia's neutrality status.

Source: Montsame, News.mn

890 HOMELESS IN MONGOLIA

It's cold and smoky in Mongolia, but at least most people have someplace warm to stay—that's when

not counting the nearly 1,000 people here with nowhere to go. Mongolia's homeless population

stood at 890, according to recent census data. Police are currently running a campaign to check the

documents of the homeless.

Source: News.mn

WITH SOE PRIVATIZATION PLANS ON THE HORIZON, SPC SHUTS DOWN

The government has begun decommissioning the State Property Commission (SPC) resulting from

extreme budget restraints. This year Mongolia will move forward with plans to privatize state-

owned assets to gather extra revenue during the current economic downturn. Meanwhile, the

government has employed numerous cost-cutting and efficiency measures that have resulted in

layoffs and the closing of agencies—including the one responsible for managing state-owned

entities. The director of the Governmental Authority will shut down the SPC on 15 January.

Source: News.mn

MERCY CORPS TO TEACH RURAL MONGOLIA TO BETTER ADAPT AND SURVIVE

Mercy Corps will help Mongolia's modern rural society face the new and emerging economic

challenges. The U.S. aid agency signed a memorandum of understanding last February to help

Mongolia's better adapt to the current economic landscape and teach new skills for survival. This

year, it plans to host trainings for adapting new strategies against environmental risks and climate

change at 15 provinces.

Source: Montsame

DRIVER'S VIOLATION SCORE SYSTEM TO BE FOLLOWED STARTING FEBRUARY 1

A new point system for retaining drivers licenses has been pushed back a month from technical

delays. Originally due to roll out on 1 January, the new system will see points between one and five

deducted from licenses for traffic violations. Everyone begins with 10 points, with licenses

suspended if a score falls to zero.

Source: Mongolia.GoGo.mn, 2

RAW HIDE EXPORT PERMITTED FOR 2016

Mongolia is testing the waters for the sale of raw hides as it looks to grow agro business in the

country. On 5 January, Mongolia permitted the sale of raw hides abroad until 5 February after the

Cabinet Secretariat launched the order at a special meeting on 25 December.

Mongolia counted 2.99 million horses at the end of 2014, a 14.4 percent increase from the previous

year. Only 65.4 million hides, or 29 percent of the total produced, were exported that year,

compared with 200,000 slaughtered for food. It exported 90 percent of the hides produced in 2012

and 2013.

Source: Montsame

HAY TRADE WITH CHINA LAUNCHES

Mongolia has exported 3.39 million tons of hay since launching its export to China last November.

Mongolia's hay trade was initiated by a memorandum of understanding signed last July that stems

from growing demand for organic feed for livestock.

Hay barrels entering the country from the eastern Bichigt-Zuunhatavch border point.

Source: News.mn

MONGOLIA YEAR IN REVIEW 2015

Mongolia felt the weight of falling commodities prices and weaker global demand in 2015. However,

progress made in moving major mining and transport infrastructure projects forward is expected to

pave the way for recovery in the near to medium term. The World Bank put year-end growth at 2.3

percent, down from 7.8 percent in 2014, while the IMF and Standard & Poor’s (S&P) are projecting

3.5 percent growth for the year.

Looking ahead, projections are mixed for 2016. While ratings agency Fitch predicts growth of

around 1 percent, on the back of an expected further weakening in commodities demand, the IMF

has kept its forecast at around 3.6 percent and the Asian Development Bank expects GDP to expand

by 3 percent. Investor confidence looks to be on the rise headed into 2016, after the government

reached an agreement in May with investors on key issues related to the massive Oyu Tolgoi copper

and gold mine expansion.

Source: Oxford Business Group

BUYANT UKHAA-2 AFFORDABLE HOUSING COMPLEX OPENS

The Buyant Ukhaa-2 apartment complex, located in the 10th Khoroo of Khan-Uul District, opened on

25 December after a year and half of construction. The complex is a part of a city housing project

launched in 2012 and closing this year to provide affordable housing to residents taking advantage

of the state-sponsored 8 percent mortgage program. “Today, the number of people moving into

apartments is being measured not by the thousands, or 10 thousands, but by the hundreds of

thousands,” said Ulaanbaatar Mayor Erdene Batbold at a ceremony. “It’s great how so many have

worked hard to meet up with this increasing demand.”

Source: UB Post

UB'S GROUND ALSO POISONED BY COAL BURNING

It's not just the air choking from pollution, anymore—Ulaanbaatar's soil has grown dangerously

polluted, too, according to a researcher from Mongolian State University. The coal ash the falls

from the smog that hovers overhead because of coal burning int he ger districts has brought

isotopes in the soil to between 60 and 90 units higher than average at the Kharkohrin market and

the 13th and 19th Districts, said D. Davaadorj, a senior lecturer for geography at the Natural

Science School at MSU.

Source: Zuunii Medee

BRT LANE CONSTRUCTION TO LAUNCH IN 2017

Construction of special lanes reserved for a bus rapid transit system (BRT) in Ulaanbaatar will

launch in 2017. The Asian Development Bank (ADB) has committed to financing and working with

government for the project worth USD 274 million. Buses will travel up to 40 percent faster than

currently while reducing pollution by 70 to 80 percent.

Source: Undesnii Shuudan

CAR TOWS LAUNCHED FOR ILLEGAL PARKING

Ulaanbaatar began towing cars parked illegally in certain areas between 08:00 and 20:00 on 1

January. Fees vary depending on the type of vehicle, with motorcycles being ticketed at MNT30,000

and vehicles weighing less than 3.5 tons at MNT60,000. Anything heavier is fined MNT90,000.

See the Source for a full list of streets where cars will be towed.

Source: Mongolia.GoGo.mn

SOLVING ULAANBAATAR'S HEALTH PROBLEMS

Ulaanbaatar has launched a new “Urbanization and Health” program aimed at tackling the many

health concerns plaguing the city. Between 50 and 54 percent of all illnesses registered in Mongolia

occur in the capital, with up to 20 different kinds of breakouts occurring annually. The new

program will seek to treat and prevent the spread of diseases such as Hepatitis, dysentery, food

poisoning and tuberculosis.

Source: News.mn

FIGHTING TO BREATHE IN MONGOLIA

It’s September, the morning after the first snowfall of the season, and Otgontuuya already knows

that winter will be brutal. She is 28, a married stay-at-home mother who spends her free time

sewing traditional tunic-like clothes for her kids. But along with freezing temperatures, winter

brings memories of the child that never came. Six years ago, Otgontuuya was informed during a

routine checkup that her baby had stopped growing. She miscarried at 12 weeks. The culprit,

doctors told her, was air pollution.

Pollution from coal is known to cause health issues such as asthma, pneumonia, heart disease, lung

cancer and even premature death. A 2011 study by researchers at Simon Fraser University in

Burnaby, Canada, showed that 1 in 10 deaths in Ulaanbaatar is connected to air pollution. Nurses

say that pregnant women often wait until the last minute to be seen by medical professionals.

Source: Al Jazeera

THE KINGDOM OF THE MONGOL BANK - EDITORIAL

A week ago Janet Yellen, Chair of the Federal Reserve System of the United States, announced that

the Federal Reserve had increased its federal funds rate by 25 base points, after seven years at

zero. As soon as the news was out, international stock exchanges saw significantly increased

trading, whereas the price of gold reached its six year low at 1,050 USD an ounce. Meanwhile, the

Bank of Mongolia (or Mongol Bank) has had its interest rates at 13 percent for a year. Mongolia’s

monetary policy focuses on ensuring price stability while ignoring other factors such as

unemployment rates—a priority figure for the Fed.

The Mongol Bank is supposed to make strong demands that government not control prices, but

instead has worked closely with government to control them. If Mongol Bank truly targets inflation,

it is time for them to reduce their interest rates immediately.

Dambadarjaa “DeFacto” Jargalsaikhan is an independent economist in the media. He is the host of

the Interview DeFacto television show and the Radio DeFacto radio program.

Source: Mongolia.GoGo.mn

POLITICS

ELECTION BILL PASSES

Half of all legislators will be appointed by parties that receive votes in this year's election. The

Election Law received 86.7 percent approval from Parliament on 25 December after weeks of

debate over the election scheme. Half of lawmakers will be decided on by voters choosing between

specific names of campaigners competing directly, while the remainder will be appointed from

party lists. The number of seats granted to each party will depend on the size of the electorate a

party wins.

Members of the opposition opposed the bill arguing that all legislators should be directly elected.

“Not only the MPP [Mongolian People's Party], but 21 other parties—both with and without

representation in Parliament—have demanded the same thing as us,” said MPP director S.

Byambatsogt.

Source: Montsame, News.mn

INDEPENDENT MPS BALK AT ELECTION LAW

Independents in Parliament have cried foul at the new Election Law, saying they will take to the

Constitutional Court their claim that it puts candidates without party affiliations at a disadvantage.

“According to the new law, if an elector chooses an independent candidate but did not choose a

party at the poll, his or her vote won't be counted,” said MP Ts. Davaasuren. “That is breaching the

Constitution.” The new election, which passed without support from the opposition Mongolian

People's Party, gives a 50-50 split between candidates directly elected and those chosen from a

party list, with each party gaining seats proportionally from the electorate's choice between

parties.

Davaasuren and fellow independent Kh. Bolorchuluun said that the 16-day campaign period was also

too short for new candidates, who don't have the benefit of years of interaction with voters that

incumbents and previous campaign runners have.

Source: Undesnii Shuudan

SPEAKER VOWS TO ANNUL CONSTITUTIONAL COURT DECISION STOPPING NEW MORTGAGES

Parliament Speaker Enkhbold has promised to see a court decision that has stopped the

government's 8 percent mortgage program dead in its tracks. “The Parliament will annul the

decision of Constitutional Court and restore original law with the same provisions as before,” said

Enkhbold during a ribbon-cutting ceremony for the commissioning of a new housing complex in

Ulaanbaatar, called Buyant Ukhaa II.

The housing complex is a success in terms of providing new affordable homes to families in

Mongolia, but access is still tough because of challenges obtaining mortgages, as evidenced by the

fact that only five families were moving into the Buyant Ukhaa II complex on the day of its

commissioning. On top of down payment costs and making monthly payments, a Constitutional

Court judge last month declared to provisions in the laws for the program unconstitutional. Now

Source: InfoMongolia.com

GOVERNMENT THREATENS TO SHUT DOWN SLANDEROUS MEDIA

Parliament unanimously passed an amendment to the Election Law on 25 December to hand out six-

month suspensions to any media charged with libel or slander against any candidate running for

office. The bill received an endorsement from the Authority for Fair Competition and Consumer

Protection.

Source: News.mn

TAX AMNESTY LAW EXTENDED TO FEBRUARY

Parliament has voted to extend the tax amnesty an additional month and half passed the expected

expiration date of 31 December. The government is allowing tax dodgers to pay back any money

hidden from the government as the country attempts to shine a light on the so-called “shadow”

economy while collecting additional revenue during this time of economic stress. The extension,

which received 81.7 percent approval, will allow individuals and companies to claim taxes owed

without any penalty until 20 February.

Since the law was adopted on 7 August, Mongolia has collected MNT6.1 trillion in funds.

Source: Montsame

LABOR LAW AMENDMENT TARGETS SMALL BUSINESS TO BOOST EMPLOYMENT

The Labor Ministry is targeting small business for growing employment in Mongolia. Labor Minister

Bayarsaikhan on 30 December submitted to Parliament amendments to the Law on Promoting

Employment that, if passed, he says would expand the capacities of small businesses and improve

working conditions.

Source: Montsame

PARLIAMENT TO VOTE ON NEW ARBITRATION LAW

Justice Minister D. Dorligjav has submitted to Parliament a revised Law on Arbitration that he says

better conforms to conditions established by the United Nations and global best practices.

Source: Montsame

MINISTER SUBMITS BILL ON TAX EXEMPTION FOR WHEAT SEED

The Agriculture Ministry has proposed that Mongolia remove taxes on wheat seed imports to provide

relief for farmers suffering from severe drought the destroyed crops last year. Mongolia's farmers

will need 48,000 tons of wheat seeds next year compared with just 28,000 in reserves held with the

government. The Standing Committee on Budget has already thrown its support behind the bill to

remove the customs and value-added tax on wheat for this year after Minister of Food and

Agriculture R. Burmaa submitted it to Parliament on 23 December.

Farmers this year harvested 203,900 tons after droughts in June and July killed off wheat crops.

Source: Montsame, 2

GOVERNMENT TO CONSOLIDATE STATS, REGISTRATION OFFICES

Actions to consolidate state offices for statistics and state registrations took effect on 1 January as

the country seeks to make government more efficient and cost effective. While the Democrats have

acted to cut down on bureaucracy since taking office in 2012, more recently government has

removed redundancies to better cope with current economic stresses brought on by slowed growth

in China and falling commodity prices.

Source: Montsame

INDEPENDENT MP S. GANBAATAR JOINED KHUN POLITICAL PARTY

The National Labor Party (KhUN) has accepted independent MP Sainkhuu Ganbaatar as its newest

member. A former head of the national labor union, Ganbaatar has ranked as one of the country's

most popular politicians by surveys conducted by the Sant Maral Foundation. Politically, he has

been a staunch critic of the Oyu Tolgoi copper-gold mine.

The party, which was formed in 2015, has attracted many business leaders to join.

Source: Undesnii Shuudan

MONGOL BANK VP RESIGNS

Parliament has accepted the resignation request of the vice president of the central bank, Bold

Javkhlan, as he readies to campaign for a seat in Parliament. Mongolia's laws prohibit individuals

with some government jobs from holding office in the next election. Those planning to campaign

must have resigned from their posts by 1 January.

The vote to relieve Javklhan from his post at the Bank of Mongolia was the second by Parliament,

after legislators rejected his request on on 21 December.

Source: Mongolia.GoGo.mn

GUTAIN DAVAA GOLD-MINING LICENSE IS LEGAL, SAYS MINING MINISTER

A mining license for the Gutain Davaa gold deposit contested by protesters is fair and legal, said

Mining Minister R. Jigjid at a 23 December press conference. Environmentalists in Khentii Aimag's

Batshireet and Binder Soums have protested against a miner planning to mine the deposit arguing

that it is prohibited by a 2009 environmental law that bans exploration and mining near certain

forests and rivers. Jigjid said the deposit was removed from the scope of the law with the passage

of amendments by Parliament in 2012.

The mining unit for the 3,174-ton gold deposit is a joint venture between a Mongolian and Canadian

company, with 51 and 49 percent interests, respectively. The miner plans to extract 1.3 tons of

gold within five years.

Source: Montsame

AUSTRALIA APPOINTS FIRST RESIDENT AMBASSADOR

Australia's first resident ambassador to Mongolia has been appointed to its new embassy, which

launches this year. “Today I announce the opening of the Australian Embassy in Mongolia and the

appointment of Mr John Langtry as Australia's first resident Ambassador to Mongolia,” said

Australian Foreign Affairs Minister Julie Bishop in a 22 December statement.

Langtry is a senior career officer with the Department of Foreign Affairs and Trade. He was most

recently assistant secretary of the northeast Asia branch. He has previously served overseas as

deputy head of mission for the Australian Embassy in Berlin, deputy head of post for the Australian

Consulate-General in Hong Kong, and first secretary for the Australian Embassy in Tokyo.

Source: Department of Foreign Affairs and Trade (Australia)

ITALIAN EMBASSY TO BE ESTABLISHED IN UB

Italy has committed to establishing an embassy in Ulaanbaatar. A visiting government delegation

from Italy approved the motion on 23 December. “The Italian Government has considered several

reasons for opening an Embassy in Mongolia; the relations between our two countries have been

developing in recent years and the possibilities to deepen trade and investment are widening,” said

Italian Minister of Foreign Affairs and International Co-operation, Paolo Gentilioni.

“Italy and Mongolia are both keen to deepen cultural relations,” he said.

Source: News.mn

MONGOLIA AND HONG KONG TO INK AGREEMENT ON CRIMINAL TRANSFERS

Justice Minister D. Dorligjav has signed a prisoner exchange agreement with Hong Kong. Hong Kong

currently has 127 Mongolians living in Hong Kong, including 21 in prison.

Source: Montsame

ACTIVISTS SEEK BETTER CONDITIONS FOR NORTH KOREAN MIGRANT LABORERS

A human rights organization in Seoul, South Korea that has been documenting the harsh conditions

imposed on North Korean migrant laborers appealed Wednesday to host countries to intervene to

protect the worker's rights. The Database Center for North Korean Human Rights (NKDB) says more

than 50,000 North Korean workers are sent overseas to about 20 nations, including China, Russia,

Mongolia, Malaysia, as well as countries in the Middle East and Africa.

NKDB researchers have documented systematic abuse suffered by North Korean migrant laborers,

who are being forced to work 12-hour days. Most are in construction, agriculture, manufacturing

and other physically demanding and at times dangerous jobs. Many also live in crowded, unsanitary

conditions in segregated compounds, where they are under constant surveillance and their

movements are restricted. The group has focused recently on investigating migrant labor

conditions in Mongolia and Poland, two countries that use large numbers of North Korean workers.

Source: Voice of America

BATTULGA, GANSUKH UNDER INVESTIGATION

Former Industry and Agriculture Minister Khaltmaa Battulga and former Road and Transportation

Minister A. Gansukh have received travel bans while corruption authorities investigate his possible

involvement in a scandal regarding funds embezzled from a railway project. Officials from both

government and Samsung C&T as the independent Agency Against Corruption suspects them of

embezzling funds from the Development of Mongolia to finance the construction of a railway line

between Mongolian Mining Corp.'s Ukhaa Khudag coal mine and the Gashuun Sukhait border point to

China. Gansukh was minister.

Source: Udriin Sonin

HEALTH MINISTER SHIILEGDAMBA RELEASED ON BAIL

Health and Sport Minister G. Shiilegdamba has been released on bail on 31 December after spending

nearly two months in prison for alleged corruption. Authorities for the Independent Agency Against

Corruption arrested Shiilegdamba on 4 November for the corruption charges [Source does not give

details of charges -ed]. Afterwards, he handed in his resignation, although it has not yet been

approved by Parliament.

Bail was possible until the conclusion of a 60-day investigation. The minister was transferred to a

hospital after his health deteriorated at the 461st Prison.

Source: News.mn

NICOLAS CAGE RETURNS STOLEN DINOSAUR SKULL TO MONGOLIA

Nicolas Cage has agreed to return a rare dinosaur skull to the Mongolian government. The Oscar-

winning actor bought the Tyrannosaurus bataar skull in 2007, unaware it had been stolen.

Authorities said he voluntarily agreed to hand over the skull after learning of the circumstances.

The Con Air star bought the skull for USD276,000 from a Beverley Hills gallery that issued him with a

certificate of authenticity. According to reports at the time, he outbid Leonardo DiCaprio for the

skull. The actor and gallery are not accused of any wrong doing.

The skull will be returned to the U.S. authorities and then repatriated to Mongolia. The U.S.

attorney in Manhattan, Preet Bharara, filed a civil forfeiture complaint to take possession of the

Tyrannosaurus bataar skull last week. Since 2012, Bharara's office has recovered more than a dozen

Mongolian fossils, including three full Tyrannosaurus bataar skeletons.

Source: BBC

BORDER TROOPS CATCH ARMS SMUGGLER

Border officials have arrested a Mongolian citizens who attempted to illegally bring three air guns

into the country from Russia. The arrested individual, whose name has not been released, was

found attempting to bring in three Baikal Makarov air guns into the country while checking

documents at the Altanbulag border point. The suspect was driving a Hyundai Galloper.

Source: News.mn

ONE DEAD IN MILITARY HELICOPTER CRASH

One person is dead and two are receiving critical care at the Central Military Hospital after a MI-8

helicopter crashed at Nalaikh Soum. Ten of the 11 people on board the military helicopter that

crashed late on 24 December have received injuries. N. Batbayar, 37, died during the crash, said

spokesperson Ts. Batsaikhan.

“The condition of the two men is serious and has still not improved,” said a spokesperson for the

Mongolian Defense Force. Other injuries for those on board include fractured legs for four men and

a broken rib, he said.

Source: News.mn, 2

BATTULGA LEADS ZINDAA.MN'S POLL FOR TOP-10 POLITICIANS

Khaltmaaa Battulga led the polls in a survey by the website Zinda.mn to find the country's most

popular politician. More than 14,000 users online responded to the survey, which asked to choose

from a list of 300 candidates. When asked to choose a party, the Democrats beat out the Mongolian

People's Party by a hair—31 versus 30 percent.

Top parties

Democratic Party – 31 percent

Mongolian People's Party – 30 percent

Mongolian People's Revolutionary Party (MPRP) – 3 percent

KhUN (National Labor Party of Mongolia) – 3 percent

Top 10 politicians

Kh. Battulga – 30.29 percent

N. Enkhbayar – 25.78 percent

S. Byambatsogt – 25.5 percent

N. Altankhuyag – 25.36 percent

L. Enkh-Amgalan – 25.06 percent

L. Gantumur – 24.65 percent

Kh. Temuujin – 24.42 percent

S. Ganbaatar – 23.48 percent

B. Bolor – 23.48 percent

M. Zorigt 23.46%

Source: Zuunii Medee

HAKUHO BREAKS GUINNESS WORLD RECORD

The Mongolian Yokozuna Hakuho has achieved the Guinness World Record for having the most wins

in the top division of Japan's professional sumo wrestling. Born with the Mongolian name M.

Davaajargal, the 69th yokozuna had won 34 bashos (bimonthly competitions) as of March 22 of 2015,

in addition to a win last July.

Hakuho already possessed records for the most wins, most consecutive wins, most wins without any

defeats and most wins with additional matches in the history of professional sumo. After winning

Hatsu Basho last January, he broke the most-wins record (32 wins), which belonged to Taiho, a

Japanese Yokozuna, and remained unbeaten since 1971. Hakuho has set a goal for 40 wins.

Source: Montsame

DRAFT LONG-TERM SUSTAINABLE DEVELOPMENT MISSION OF MONGOLIA 2016-2030 – REPORT

Mongolia has aspirations to: rapidly and sustainably grow its economy; improve its status and

competitive position amongst the family of the world’s nations; and improve the quality of life and

social indicators for its citizenry. These aspirations are laudable; however a well proven adage

states “you cannot be great at everything.” The Saikhanbileg government has successfully resolved

the biggest issue, resolving the dispute with Rio Tinto, allowing signing of the U6 billion project

finance package and a restart of the underground project at Oyu Tolgoi LLC. This puts Mongolia

back on the map as being a place where banks are again prepared to lend large amounts of risk

capital.

Regardless of the final strategy, or the strategic goals and development targets or the “principles

for development” that are espoused in this 2016-2030 Vision document several key principles need

to be addressed to underpin high chances of success.

Read the full report here.

Source: Institute for National Strategy (INS)

COMMEMORATING THE 60 YEARS OF DIPLOMATIC RELATIONS OF INDIA AND MONGOLIA –

EDITORIAL

Relations between India and Mongolia go back more than 2,000 years, when Buddhism traveled from

India to Mongolia. Lord Buddha was the first Ambassador from India who sent the message of peace

to this region. This cultural relationship has continued uninterrupted, and, in recent history, India

has been supportive of Mongolia. India was one of the first countries outside Soviet Block to

establish diplomatic relations with Mongolia. The first-ever historic visit of Indian Prime Minister,

Shri Narendra Modi to Mongolia took place from 16 to 18 May.

The bilateral trade between India and Mongolia is USD15.70 million (2014) only and does not justify

the potential between the two economies given the excellent political and cultural relations.

Investment from India in Mongolia is USD7.8 million. As one of the largest economies in the world,

India offers great opportunity for Mongolian products. India could also provide Mongolian economy

it's technological inputs at a very competitive prices.

Ravi Shanker Goel is the second secretary for economic and commercial department at the Indian

Embassy to Mongolia.

Source: The Mongolian Observer

MONGOLIA’S FLAGGING ECONOMY STALLS POLITICAL PROGRESS – EDITORIAL

2015 marked the 25th anniversary of Mongolia’s democratic revolution. So after 25 years of

democracy, where does Mongolia stand? Traditionally, parliament has marked the anniversary of

democracy with a general amnesty, but this summer’s variant covered a number of criminals that

had been involved in political activities and corruption. This led to the general perception that it

was law forced on the Democrat by its coalition partner, the Mongolian People's Revolutionary

Party. The perceived goal was to serve Nambar Enkhbayar, former president but also pardoned

money laundering convict.

Ongoing proposals to reconfigure the institutional underpinnings of Mongolian democracy have

received particular attention this year. Constitutional reforms centered on rebalancing the division

of power between the president, prime minister and parliament were floated in November, but the

push for such reforms seems to have stalled. A more pressing issue is the timing of the upcoming

2016 parliamentary election.

Julian Dierkes is an associate professor at the University of British Columbia’s Institute of Asian

Research. He writes on Mongolian affairs at his blog, Mongolia Focus, and on Twitter.

Source: East Asia Forum

KNOWLEDGE SHARING SESSION BCM Knowledge Sharing Session was organized on December 24th 2015 at the Ulaanbaatar City

Public Library with 31 people from 19 member companies attending. The topic of this month's

session was “Implementation of System Certification Standards and its Benefits” facilitated by

D.Otgonbat, Director of Observe Consulting LLC. The topic covered System Certification standards,

why they are important for business and how to adopt and implement SC standards in Mongolia. The

feedback collected from attendees shows that 95% informed that their training needs were met;

60% said their expected topics were fully covered, the remaining 40% informed their expected

topics were partially covered. 25% of participants proffered to extend the duration of the session.

Otgonbat D is a Certified Management Consultant and Lead auditor for QMS (ISO9001), EMS

(ISO14001), OHSMS (OHSAS18001) and EnMS (ISO50001) certified by the Professional Evaluation and

Certification Board. Mr.Otgonbat also works as a national trainer for Sustainable Finance Initiative.

NEW MONGOLIAN LAWS

The following laws, amendments and annulments to laws were published in the latest weekly

Government bulletin. Unless otherwise decided by Parliament, they will take effect ten (10) days

after publication.

Date Laws

18.12.2015 Law on Development Policy Planning

Amendments to Law on Government of Mongolia

Amendments to Law on Budget

Amendments to Law on Regional development administration, regulation

Amendments to Law on Mongolia's administration, territorial unit, its management

Amendments to Law on Labor promotion

Amendments to Law on City building

Amendments to Law on Presidential elections of Mongolia

Amendments to Law on Parliament elections of Mongolia

Amendments to Law on Capital's citizen representative council elections

Amendments to Law on Aimag, soum, district citizen representative council

elections

Addendum to Law on State audit

Addendum to Law on Political party

Law on Energy saving

Addendum to Law on Government

Law on Ratification of Loan agreement

25.12.2015 Amendments to Law on Mongolia's administration, territorial unit, its management

Amendments to Law on State and local property

Addendum to Law on Customs

Amendments to Law on Customs tariff, customs tax

Please visit BCM's website, Legislative Working Group, for a summary of Mongolian laws. BCM

members who wish to access complete versions of the laws and regulations in Mongolian language

are welcome to email the BCM office.

BCM ADVOCACY NOTES

Parliamentary draft resolution of “Long-Term Sustainable Development Mission of Mongolia” is

presented

On January 4, 2016, Chairman of the State Great Khural (Parliament) Mr. Zandaakhuu Enkhbold was

presented a parliamentary draft resolution regarding the Long-Term Sustainable Development

Mission of Mongolia 2016-2030, by the Chairman of the State Structure’s Standing Committee MP A.

Bakei, Vice-Chair of the Democratic Party Caucus MP S. Odontuya, Chair of the “Justice Coalition”

at the Parliament MP N. Battsereg and MP S. Demberel. To view the draft resolution in Mongolian

language, please click here.

The Sub-Working Group tasked to develop the Long-term Sustainable Development Vision (2016-

2030) under the State Structure (SS) Standing Committee at the Ikh Khural organized a second round

discussion on 27 November 2015, inviting private sector and the academia for their comments. BCM

provided key comments to policy document to the sections: Energy, Logistics, Green Economy, Tax,

Risk and Urban Planning. The Sub-Working Group at the SS Standing Committee met on Tuesday, 8

December, to discuss the comments received.

Source: www.parliament.mn

Draft Labour Law (Draft Law) is returned to the Government

On 10 Dec 2015 at the plenary session of the Parliament it was decided to return the Draft Labour

Law (Draft Law) to the Government based on a multiple conceptual and editorial comments

provided by a wide range of stakeholders.

There is no indication of further meeting/discussion held in relation to the Draft Law; and the Draft

Law is currently being on hold. Furthermore, the working group is aiming to submit the amended

Draft Law to the spring session of Parliament, which will be held around April 2016.

The Economic Council, established by the decree of the Prime Minister Ch. Saikhanbileg in 2015, is

currently working on the draft Law on Arbitration. BCM requested its Legislative Working Group to

discuss the draft law on arbitration and provide key comments. In its scheduled meeting on Friday,

December 11, the Economic Council reviewed and were positive toward BCM's comments.

For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.

BCM WORKING GROUP NEWS

‘BCM in the University Classroom’ series

Guest Speaker: Jon M. L. Lyons, Country Representative, GGGI,

Presentation topic: "Pathways to Greening Economic Growth in Mongolia and beyond"

Where & When: at the University of Humanities on 24 November 2015 and at the Institute of

Finance and Economics on 3 December 2015

Jon M. L. Lyons, Country Representative, GGGI, gave presentation titled "Pathways to Greening

Economic Growth in Mongolia and beyond" at the University of Humanities (UoH) on 24 Nov 2015 and

Institute of Finance and Economics (IFE) on 3 Dec 2015. Over 80 senior students attended the

lecture from the UoH and over 70 students from IFE.

Mr. Lyons, fluent in Mongolian, delivered his presentations in Mongolian. The presentations were

followed by question and answer sessions. While students at the UoH were curious about his recent

project on model green public kindergarten to be built in Songinokhairkhan district of Ulaanbaatar,

students at IFE were asking questions about the size of projects eligible for green finance,

monitoring and reporting requirements for donor-funded projects and vacancy at GGGI or possibility

of doing an internship there.

For more information, please contact Khulangoo, Working Group Coordinator at

khulangoo@bcmongolia.org and Bayarmaa Amarjargal, Vice Director at bayarmaa@bcmongolia.org.

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BCM’s Logistics Working Group

BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office

Building with 7 people in attendance representing Mongolian Express Co., Ltd. (known as Monex),

Representative Office of Mitsui & Co., Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-

Dolgoon Delgerekh LLC.

Agenda of the meeting:

• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”

• Discuss and plan WG’s 2016 activities

Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.

Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the

company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service

in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in

the delivery logistics within Ulaanbaatar.

Meeting participants were interested in the expansion plans of the company, such as delivery

services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave

comprehensive answers about the company’s plan for establishing cargo service between South

Korea and Mongolia initially and delving into other markets.

Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.

He again encouraged our members to read through the soft ideas laid out and provide comments.

Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,

so that members interested or operating in that topic area can actively participate and bring in

more insight.

The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the

questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.

For more information about this meeting, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM, at khulangoo@bcmongolia.org.

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BCM’s Energy and Environment Working Group

BCM's Energy and Environment WG meeting was held on 3 December, 2015 at EEIBC from 16:30-

18:30. The meeting was attended by 16 people with the following stakeholders:

Private sector: Newcom, Sopocco LLC, Areva Mongol LLC, Observe Consulting LLC, MCS Energy

Government: Ministry of Environment, Green Development and Tourism, Energy Development

Center of Ministry of Energy

Others: GGGI, WCS, French Embassy, Embassy of Canada

Guests: Sustainable Fiber Alliance

New members: D. Otgonbat, Observe Consulting LLC and Ch. Sarnai, Clean Energy Asia of Newcom

Group

Agenda of the meeting:

Discussion Topic: What's happening in Paris during Climate change events: What are the implications

for private sector?

Introduction and Opening remarks by Working Group Chair

"Introduction about Climate Change Conference/21 and Mongolia's commitment status" by D.Saruul,

Project Manager, Biennal Update Report to UNFCCC.

"Introduction about French Embassy and Overview about COP21 in Paris" by Raphael Droszewski,

First Advisor, Chief Adjoint de mission et Consul, The Embassy of France in Mongolia

Discussion on the topic among participants

Meeting minutes summary:

Bulganmurun Tsevegjav, Senior Program Officer of GGGI-Mongolia and Chair of the BCM’s Energy &

Environment WG (EEWG), introduced Jon Lyons, GGGI’s Country Representative to Mongolia, as an

upcoming Chair of the EEWG for 2016 during her absence.

Key points agreed during the meeting was to organize the next meeting in Jan or Feb 2016 following

up on the COP21 outcomes, updates on financial mechanisms, available funds and incentives for

private sector to develop low-carbon projects and to discuss its implications for the private sector.

For more information, please contact Bayarmaa Amarjargal, Vice Director at

bayarmaa@bcmongolia.org.

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BCM Risk Working Group

BCM’s Risk Working Group’s “year-end” meeting was held on Thursday, 3 December at Silk Road

Restaurant, with 14 members in attendance representing Mandal Insurance, Thiess Mongolia,

XacBank, Churchill’s, Wagner Asia, Erdenes Tavan Tolgoi, Deloitte Onch Audit, Bagatumurch and

Observe Consulting.

Agenda of the meeting:

• Featured guest speaker: Christine Hudetz, Transparency International Managing Compliance Risk –

TI TOOLs and examples

• Working group's overview of year 2015

• Discuss and plan WG’s 2016 activities

BCM’s upcoming 8th WG-Business Ethics Co-chair Ms. Christine delivered comprehensive

presentation about Transparency International (TI) and examples of innovative tools developed by

TI. Members were interested in the UK Bribery Act, which straddles the public/private divide to

encompass all commercial activities.

Zaya Bolorbold, Co-chair of the Risk Working Group (WG) introduced plans for 2016, with Mark

Bailey Co-chair of the Risk WG clarifying the proposed idea for disaster management drill exercise.

It was agreed to send the WG plan for 2016 to members for comments and convene for next

scheduled meeting in January 2016.

The “year-end” meeting was concluded with delicious dinner graciously provided by Mandal General

Insurance. For more information about this meeting, please contact Khulangoo Purevjav, Working

Group Coordinator of BCM at khulangoo@bcmongolia.org.

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BCM Education Working Group

BCM’s Education Working Group was held on 26 November 2015 at Executive Excellence

International Business Center, 10F Galaxy Tower from16:00 to 18:00. Fifteen people attended the

event representing foreign mission in Mongolia, private sector, universities and consultants of donor

funded projects:

Foreign Mission: Canadian Embassy;

Universities: National University of Mongolia, Mongolian University of Science and Technology

Private sector: PwC, Minter Ellison

Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education

and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The

Global Fund;

Agenda of the meeting:

16:05-16.10 Introductions

16:10-16:25 Update on Higher Education Reform Project activities (IRIM/Saha)

16:25-16.40 Update on Vocational and Technical Education Activities (VETP/Pascal)

16:40-17:10 Update on Labor Law Amendments, TVET Law Amendments: Higher Education

Amendments (IRIM/Saha)

17:10-17:30 Updates by members (FLP, Mandal)

Meeting minutes summary:

Opening remarks by Education Working Group Chair-Saha Meyanathan with passing of the

information about being selected as the best Working Group of the year 2015.

Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB

funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities

will be organized first week of December.

During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of

building the capacity of the professors, as they are the ultimate knowledge givers to the students.

The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher

education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to

highlight a few:

For more information about this event, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM at khulangoo@bcmongolia.org.

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BCM Capital Markets Working Group

The BCM Capital Markets Working Group meeting was held on Tuesday, 15 September, at

Ulaanbaatar City Public Library program room with 42 participants attending.

The expanded meeting included 34 companies from BCM members.

Moderator of session was Nick Cousyn, COO, BDSec and co-chair of the BCM Capital Markets WG.

The following presentations were made during the meeting:

- "Khan Bank update" - by Norihiko Kato, CEO of Khan Bank

- "Trade & Development Bank update" - by Randolph S. Kappa - President of Trade & Development

Bank

Please contact Erdenetsetseg T, BCM Working Group co-coordinator at khulangoo@bcmongolia.org

for more information about the meeting outcomes.

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BCM Tax Working Group

The BCM Tax Working Group (TWG) met on Thursday, 27 August, with 12 members attending.

Onch Dendevsambuu-Deloitte Onch and Tsendmaa Choijamts-PricewaterhouseCoopers, Co-Chairs of

the TWG, moderated the session.

New participants: Bolortsetseg T, Khan Bank; Boloroo T, Thiess Mongolia.

Meeting agenda was to review the draft amendments to the CIT Law.

The summary comments from the TWG will be sent next week to BCM's chair, Byambasaikhan B, for

follow-up with key GoM officials.

Next TWG meeting will review the newly adopted VAT Law which will be in effect 1 January, 2016.

Please contact T. Erdenetsetseg, BCM Working Group Coordinator, at khulangoo@bcmongolia.org .

BCM ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‘INTERVIEWS’

Presentations:

BCM Monthly meeting on December 7:

- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better

Leaders Through Education & Idea Exchange”

- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant

Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –

STOPP”

- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against

Corruption (IAAC) of Mongolia - “Introduction of IAAC”

- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”

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MONGOLIAN ANNUAL RISK MANAGEMENT FORUM, 11 NOVEMBER 2015

- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -

Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group

- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western

International Mongolia

- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,

NPC&Mandal LLC

- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head

Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor

- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General

Insurance

- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC

Mongolia

- "Corporate Crises Management" - G.Odbayar, Mining National Operator

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BCM Monthly Meeting on 2 November:

- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper

business”

- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -

“Introduction to Transparency International’s Business Principles for Countering Bribery”

- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor

Law”

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BCM’s “Knowledge Sharing” event at EEIBC on October 9

- Dr. Nigel Finch, Managing Director, Saki Partners, “Strategically Managing Mongolia’s Sovereign

Credit and Perception Ratings”

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Presentations at BCM Monthly Meeting on 28 September:

- Mend-Orshikh, Founder & President, New Media Group, “Sales and business opportunities using

BCM online platform”

- Steve Potter, Executive Director, Wagner Asia Group, “Corporate Ownership vs. Corporate

Responsibility: How a foreign owned company can contribute to the well-being of Mongolia. Case

Study: WAGNER ASIA Group”

- Cameron McRae, Chief Executive Officer of Tarva Investment and former CEO of OT LLC,

“Competitiveness in Central Asia”

- Saha Meyanathan, CEO, EEIBC and Chairman of BCM Education Working Group, “BCM and

Mongolia's Education & Capabilities Agenda”

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Presentation at Discover Mongolia 2015 on 3 September:

- S. Javkhlanbaatar, General Director, Invest Mongolia Agency, “Opportunity to invest in the mining

industry”

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Presentations at BCM Monthly Meeting on 24 August:

- Jennifer Bielman, Country Director, Mercy Corps Mongolia, "Mercy Corps in Mongolia - 15 Years of

Progress"

- Lee Cashell, CEO, APIP, “Overview of the Property Development Market”

- Anthony Woolley, Senior Associate, Hogan Lovells, “Legislative Update - 2015”

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Mongolia Reports:

- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”

- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform

Priorities (Sep 2015)

- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"

- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"

- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"

- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,

2015, “FDI Environment in Mongolia”

- Hogan Lovells, “Law on State Registration of Legal Entities”

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Interviews:

- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More

Effective"

- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)

- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;

- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,

August 20, 2015;

- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV

News, August 20, 2015;

- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview

SOCIAL NETWORK WITH BCM

The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.

Keep up to date on the latest business deals in Mongolia and how the climate for investment is

improving each day with BCM.

Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the

latest announcements and comment on events carried in the BCM NewsWire with the community.

Hear breaking news and announcements as they happen when you follow BCM on Twitter at

https://twitter.com/bcmongolia.

The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's

Mongolian-speaking audience and members. Please click on the below link to follow us on our new

LinkedIn page.

http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.

Social stats: BCM now has 10,981 fans on our Facebook fans page, 1,951 connections on LinkedIn

network, and 1,940 followers on Twitter.

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BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column

featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and

proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study

Tours of Businesses.” The third column is in the current edition, September 2015: "Wagner Asia

Technology Innovations."

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The BCM NewsWire is used as source for the "MM Today" News program in English aired by Mongolia

National Broadcasting (MNB) on Fridays at 19:00.

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BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.

From January 2013 to October 2015 we have posted a total of 103 news items related to BCM

activities, economic and business related updates.

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The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos

from BCM events.

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As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy

newly introduced interactive features such as: edit your organization's profile information; post

vacancy notices from your organization; post cooperation proposals with other members or deals

you would like to offer to other BCM members; and start a forum and ask questions directly on the

web platform. Of course you can also visit our website for news information, interviews, event

photos, videos and announcements regarding BCM activities.

According to Google Analytics report as of December 11, 2015, the daily web traffic to BCM website

was 78 visitors with 93 sessions. 80% are from Mongolia, 6% from the USA and 2% from Australia and

2% from Japan.

ECONOMIC INDICATORS

INFLATION

Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]

Year 2007 *15.1% [source: NSOM]

Year 2008 *22.1% [source: NSOM]

Year 2009 *4.2% [source: NSOM]

Year 2010 *13.0% [source: NSOM]

Year 2011 *10.2% [source: NSOM]

Year 2012 *14.0% [source: NSOM]

Year 2013 *12.5% [source: NSOM]

Year 2014 *11.0% [source: NSOM]

November 30, 2015 *2.9% [source: NSOM]

*Year-over-year (y-o-y), nationwide

Note: 1.9% y-o-y; 5.3% Core, Ulaanbaatar City, November 30, 2015

CENTRAL BANK POLICY LOAN RATE

December 31, 2008 9.75% [source: IMF]

March 11, 2009 14.00% [source: IMF]

May 12, 2009 12.75% [source: IMF]

June 12, 2009 11.50% [source: IMF]

September 30, 2009 10.00% [source: IMF]

May 12, 2010 11.00% [source: IMF]

April 28, 2011 11.50% [source: IMF]

August 25, 2011 11.75% [source: IMF]

October 25, 2011 12.25% [source: IMF]

March 19, 2012 12.75% [source: Mongol Bank]

April 18, 2012 13.25% [source: Mongol Bank]

January 25, 2013 12.50% [source: Mongol Bank]

April 8, 2013 11.50% [source: Mongol Bank]

June 25, 2013 10.50% [source: Mongol Bank]

July 30, 2014 12.00% {source: Mongol Bank}

January 14, 2015 13.00% {source: Mongol Bank}

CURRENCY RATES – 7 January 2016

Currency

US dollar USD 1,998.61

Euro EUR 2,155.80

Japanese yen JPY 16.93

British pound GBP 2,916.47

Hong Kong dollar HKD 257.81

Chinese Yuan CNY 303.11

Russian Ruble RUB 26.45

South Korean won KRW 1.67