AmCham Daily Newswire

President vetoes

Summary: Last week, the Parliament decided to return the Law on Examining and Resolving of Criminal Cases, Law on Law Enforcement, Law on Prosecutor’s Office, and Law on Addressing Domestic Violence and Abuse and issued decree number 26. The President of Mongolia Ts. Elbegdorj has vetoed the five laws, citing that if laws are already approved, it violates the Constitution to return the laws by Parliament decree. The veto was based on the Law on the President of Mongolia, the Constitution and the Law on Assembly of Parliament.

Keywords: legal reforms The Century News /page 1/

Task force established to examine exit bans

Summary: Mongolia’s FDI in 2011 reached 4.7 billion USD and in 2016, the FDI stands at 36 million USD. The Minister of Justice and Home Affairs S. Byambatsogt stated that over the past 5 years, the FDI has decreased by 130 times and, according to statistics released by the Immigration Agency, around 200 foreigners and 500 nationals have been banned from leaving Mongolia. Numerous complaints from foreign embassies in Mongolia were sent to high-ranking Mongolian officials regarding banning foreigners from leaving the country. Therefore, the Government has created a taskforce, led by Minister Byambatsogt, to investigate whether an investor or a business owner has been investigated on false grounds. It is noted that the Government continually placing pressure on foreign and national investors and bureaucracy attribute to the decrease in FDI. According to the initial statement made by the task force, many of the foreigners who are banned from leaving the country are from Russia, China, and South Korea.

Keywords: exit bans, FDI The Official Gazette /page 2/

Foreign loan balance increases by 8%

Summary: Yesterday, the Central Bank presented Mongolia’s 2^nd quarter overview of the foreign sector and noted that the account suffered a 137 million USD loss. Financial accounts experienced a profit of 250 million USD, decreasing by 144 million USD compared to last year. Balance of payments experienced a loss of 8 million USD, indicating that the foreign currency reserve has decreased by 8 million USD. Mongolia’s total foreign debt from loans reached 23.4 billion USD, an increase of 8% compared to last year. The total debt is comprised of 964 million USD of the Government’s foreign debt, 66 million USD borrowed from commercial banks, and 8 billion USD borrowed by corporate entities. The report concludes that the total net FDI equals -4.5 billion USD and that Australia and Russia have pulled back their investment while France and Canada have increased their investment.

Keywords: debt, FDI Today /page 1/

Mongolia’s economy is still profitable

Summary: Invest Mongolia 2016 commenced on September 5^th to discuss the economic hardships and ways to overcome the difficulties Mongolia is facing. During the forum, Executive Director of Erdenes Mongol LLC, B. Byambasaikhan stated that Mongolia is still profitable to investors who look at long-term gains and said that he is resigning from his current position. Member of Parliament L. Bold mentioned that the success of ASEM sends a positive message to investors. The President and Executive Director of Erdene Resource Development Peter C. Akerley highlighted that future mineral prices look positive and if the tax environment is stable, Mongolia’s gold sector can attract investment. Well-known financial advisor Bill Bikales highlighted that the main short-term obstacle facing the Government is overcoming economic problems and, for the long term, it is attracting FDI. Member of Parliament A. Undraa proposed to introduce taxes for merchants and herders. Invest Mongolia is being held at Shangri-La Hotel today and will cover topics, such as Mongolia’s infrastructure, and Mongolia’s green economy and the future of renewable energy.

Keywords: Invest Mongolia Conference www.ikon.mn