August 29th, 2015
- The Government expects to increase eight types of tax rates
- Moody’s lowers Mongolia’s sovereign credit rating
- Erdene Provides Update on Gold Projects in Mongolia
- Domestic trade increases
- Transportation sector indicators
- Mongolia to meet domestic flour demand
APIP’s Layton Croft & Lee Cashell interviewed at Emerging Opportunities
- Non-regular session of Parliament called
- Government plans to fire 20 thousand civil servants
- Three cooperative neighbours
- Mongolia’s first Catholic priest to be ordained in Ulaanbaatar
- New Burn Treatment Center to be built with Kuwaiti financing
Visit the Mongolian Monday Memo Archive
The Government Expects to Increase Eight Types of Tax Rates
The cabinet, led by PM J. Erdenebat, introduced its plan to lower the budget deficit by raising 8 types of tax, such as a progressive income tax (PIT), tax on savings, luxury property tax, among others, as well cutting salaries for executives of state-owned enterprises and members of parliament. It will be discussed at parliament and is expected to pass with majority support.
Moody’s Lowers Mongolia’s Sovereign Credit Rating
Following up on the Bank of Mongolia’s decision to increase the policy rate (by 450 basis point), the rating agency Moody’s lowered Mongolia's sovereign credit rating to B3 from B2. Previously, S&P lowered its rating to B-, noted that the hike on interest rate was likely to inflict more pain on the economy, and that external support was required.
Erdene Provides Update on Gold Projects in Mongolia
On August 23rd, 2016, Erdene Resources Development Corp. (TSX: ERD) made an extensive update on its 100%-owned Bayan Khundii’s Gold and Altan Nar’s Gold-Polymetallic Projects. Drilling is set to resume at Bayan Khundii in September, and is expected to continue throughout Q4 and will include a drill program at Altan Nar.
Domestic Trade Increases
In the first half of this year, 25.6 thousand or 38.0% of 67.4 thousand entities were doing business in the whole and retail sales nationwide. Total selling of both the whole and retail sales sectors reached MNT 5,297.0 billion in the first half of 2016, increasing by MNT 91.3 billion or 1.8% against the previous year.
Mongolia to Meet Domestic Flour Demand
This Autumn, Mongolia is expected to harvest 501 thousand tonnes of crops, which will be amount necessary to supply domestic demand. This is broken down as: 320 thousand tones of wheat, 174.7 thousand tones of potatoes, 117.5 thousand tonnes of vegetables, 32.5 thousand tonnes of plant oils and 43.4 thousand tonnes of forage crops.
Transportation Sector Indicators
In the first seven months of 2016, 10,729.3 thousand tonnes of freight and 1,554.3 thousand people (duplicate counting) were carried by railway transport. The revenue from railway transport saw an increase of 9.3%, air transport revenue went up 11.3%, and the number passengers on air transport also increased 3.7% compared to same period of the previous year.
APIP’s Layton Croft & Lee Cashell Interviewed at Emerging Opportunities
APIP Independent director - Layton Croft spoke overall Mongolian economic condition as well as mining and real estate sectors investments at Emerging Opportunities. Also our Chairman and CEO - Lee Cashell joined on the phone from Mongolia during the interview. If you would like to listen full interview, please visit here. Or you may read the main points from here.
Non-Regular Session of Parliament Called
Due to current economic situations, Parliamentary Speaker M.Enkhbold has called a non-regular session of Parliament. It is expected they will discuss and pass resolutions regarding celebrating the 100th anniversary of the birth of Yu.Tsedenbal, the 2016-2020 governmental action programme, a law on budget assumptions, and postponing the enforcement date of criminal code amendments etc.
Government Plans to Fire 20 Thousand Civil Servants
At a non-regular session of the State Great Khural, held earlier on August 26th, MP’s discussed the approval of the 2016-2020 governmental action programme. Finance Minister B.Choijilsuren proposed laying off 20,000 civil servants in an attempt to put breaks on the swelling public sector wage bill.
Three Cooperative Neighbors
The transportation trial between China, Russia and Mongolia is currently going well. An echelon of trucks has already run along the transit route from the Chinese Port of Tianjin via Ulaanbaatar and is now nearing the Russian city of Ulan-Ude. The new transit transportation is expected to help increase trade volume by around 17-20% by 2020.
Mongolia’s First Catholic Priest to be Ordained in Ulaanbaatar
Joseph Enkh will be ordained to the priesthood by His Exc. Mgr. Wenceslao Padilla, CICM, Apostolic Prefect of Ulaanbaatar on August 28. The Don was ordained as a deacon on 11 December 2014 in Daejeong (South Korea), where he received his initial formation, and returned to Mongolia in January.
New Burn Treatment Center to be Built with Kuwaiti Financing
During its regular Wednesday meeting, the Cabinet decided to devote grant aid from the Kuwait Fund for Arab Economic Development to build and equip a new burn treatment facility. It has been confirmed that the new cabinet will not decrease the budget for the health sector in the next 18 months in amendments to the budget.