| EuroChamber's Spotlight Interview |
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EuroChamber is delighted to present a video featuring Mr. Orkhon Onon, the CEO of the Trade and Development Bank of Mongolia. In his interview, Mr. Orkhon highlighted TDB's noteworthy achievement of a substantial increase in net profits in 2023 compared to previous years, reaching MNT 210 billion and underscoring the bank's robust profitability. TDB is actively engaged in providing international banking services tailored to meet the diverse needs of its customers through close collaboration with European partners, boasting approved credit lines totaling approximately USD 119 million.
The cross-border settlement process has exhibited consistent growth, aligning with the upward trajectory of foreign trade turnover between Mongolia and European countries, which has demonstrated annual increases. For TDB, this growth translates into fulfilling the foreign settlement needs of its clients through the management of more than 40 nostro accounts held in 17 European banks.
Please click on the link below to watch the video:
EuroChamber is grateful for Trade and Development Bank for sponsoring our upcoming event "The EU Global Gateway Strategy and Financing Opportunities". |
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| Eurochamber is pleased to welcome its new Corporate Plus member- Bogd Bank.
Established in 2014, Bogd Bank is the most recent addition to the rich history of the Mongolian banking industry. Since its founding, the bank has been working towards bringing increasingly modern products and services to its customers, propelling its expansion to become the leading bank of the 21st century.
We look forward to our fruitful cooperation! |
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| Banks Agree to Postpone Loan Repayment of Herders until June |
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Due to the severe winter conditions in Mongolia, the Government has declared a heightened state of preparedness throughout the country, and six emergency groups headed by Ministers are working in the countryside. During his working trip to the countryside, Mr. Amarsaikhan Sainbuyan, Deputy Prime Minister of Mongolia and Chairman of the State Emergency Commission had the most requests that were related to herder's loan.
Therefore, today the Deputy Prime Minister has met with officials of the central bank and commercial banks to discuss the possibility of postponing the loan repayment and reached an agreement.
President of the Bank of Mongolia, Mr. Lkhagvasuren said "The agriculture sector experienced a decline in 2023 and the request of postponement of herders loan repayment keeps coming. The Central Bank is ready to provide policy support.”
A total of MNT 1.2 trillion in loans provided to 140 thousand herders are registered in the database of the Bank of Mongolia, 51.2 percent or MNT 618 billion of which was issued by State Bank and 48.5 percent or MNT 585 billion by Khan Bank.
Khan Bank has already started to postpone the repayment of the loan of the herdsmen who applied after December 1, 2023. State Bank has agreed to postpone the repayment of the loan until June 1, 2024.
The National Reinsurance Company also expressed that it would pay compensation for indexed insurance of the herdsmen insured between September and October of last year.
Source: montsame.mn |
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| USD 10 Million Project to be Implemented for Advancing Eco-Friendly Agriculture |
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Minister of Environment and Tourism of Mongolia Bat-Erdene Bat-Ulzii received Ambassador of Canada to Mongolia Sandra Choufani on February 16, 2024.
The Ministry of Environment and Tourism of Mongolia reported that during the meeting, the two parties exchanged experiences in mitigating climate change, reducing desertification and land degradation, increasing forest reserves, and implementing the “One Billion Trees” National Campaign. Discussions also revolved around protecting specially protected areas that preserve natural and cultural wealth, improving proper use and protection management, and strengthening the capacity of environmentalists through enhanced cooperation between the administrations of specially protected areas.
Ambassador Sandra Choufani stated, “Canada is concerned about desertification, air and soil pollution, and pasture degradation in Mongolia and Canada. Therefore, the Government of Canada is preparing to launch a USD 10 million project in the field of eco-friendly agriculture in Mongolia. The project will be implemented in collaboration with the Ministry of Environment and Tourism, the Ministry of Food, Agriculture and Light Industry, farmers, and enterprises operating in the agriculture sector. We are committed to investing in projects and initiatives aimed at developing a green economy in Mongolia, supporting environmentally friendly businesses, and meeting energy needs through sources other than coal. If Mongolia transitions to green energy, it has the potential to become an energy-exporting country. Our country derives energy from various sources such as waste, water, and uranium, and we are eager to share our expertise.”
Source: montsame.mn |
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| Discussions are currently in progress to establish an agreement aimed at ensuring the stability of fuel supply from Russia |
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On February 19th, 2024, the Working Group, led by Deputy Minister of Mining and Heavy Industry, B. Uyanga, convened with Rosneft management in Moscow. The meeting focused on addressing the supply quantity for the anticipated 2024 purchases and maintaining consistent shipments. Rosneft expressed its commitment to cooperation on all fronts. The working group comprised representatives not only from the Ministry of Mining and Heavy Industry but also from the Mineral Resources and Petroleum Authority of Mongolia, along with representatives from oil product importers.
Additionally, B. Uyanga met with officials from the Ministry of Energy to discuss a government-level agreement between the two countries to establish a reliable supply of fuel from the Russian Federation to Mongolia. Emphasizing the importance of the concluded agreement, it was highlighted that Russia will not impose any restrictions on the export of fuel to Mongolia. The Ministry of Mining and Heavy Industry disclosed that the parties are currently in the process of exchanging opinions on the draft agreement.
Source: ikon.mn |
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| A budget of 333 billion ₮ has been allocated for the initiation of basic research and the commencement of metro construction. |
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The capital city's 2024 budget amendment addresses the resolution of the metro issue. Specifically, 180 billion MNT has been earmarked in the 2024 budget for developing the feasibility study of the metro and preparatory work, with construction approved for financing from the state budget.
Towards the end of the previous year, the government made the decision to entirely fund the metro construction from the capital city's budget. Consequently, the city administration convened with both foreign and domestic experts to strategize the expeditious, high-quality, safe, and reliable implementation of the subway.
In line with this initiative, a budget amendment has allocated 54.6 billion MNT for consulting services, to be financed through implementation. Additionally, based on the preliminary feasibility study conducted by the Japan International Cooperation Organization (JICA), a tender will be announced. This year, 333 billion MNT has been allocated for construction, with funding contingent on performance.
Upon securing consulting services, the next steps involve preparing tender documents and selecting a contractor. The timeline for contractor selection is anticipated to fall between June and September, 2024, impacted by the manner in which consulting services are chosen and acquired. Experts emphasize the need for fundamental studies such as location and hydrogeology, which are slated for completion within this year. The plan is to begin construction work by September, 2024.
Source: ikon.mn |
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Our mailing address is: info@eurochamber.mn |
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