During this year’s Invest Mongolia, which addressed the interests of investors in the state policies of the new Cabinet, foreign investors advised the Mongolian government to take measures to regain their trust in order to improve foreign investment in the country.
From September 5 to 6, the forum’s attendees discussed and exchanged views on the nation’s current economic situation, the governmental action plan for the next four years, and if the Cabinet will take investor friendly measures in governance.
Macroeconomic improvement, real estate investments, and the progress and impact of Oyu Tolgoi’s (OT) underground mine and other major projects were also discussed at the forum.
Masa Igata, CEO of Frontier Securities, presented opening remarks at the conference to talk about the importance of the Asia-Europe Meeting (ASEM) Summit to investors.
Speaking at forum, former Minister of Foreign Affairs L.Bold emphasized that the political relations of ASEM members are about to transform into economically beneficial cooperation.
Even though Moody’s downgraded Mongolia’s sovereignty rating from B2 to B3, and initiated a review for further downgrade on August 26, according to analysts, non-performing loans issued by commercial banks exceeded over one trillion MNT. This was the highest result in several years, but banking representatives underlined that the sector is not in critical condition.
O.Orkhon, CEO of Trade and Development Bank of Mongolia said, “Non-performing loans are not expected to increase in the future, because they have already reached rock bottom.”
M.Bold, CEO of Khas Bank, stressed that commercial banks are focusing on minimizing non-performing loans. “Even though non-performing loans reached one trillion MNT, it’s a low result in comparison to the economic crisis in 2009.”
On August 18, Mongol Bank decided to increase the monetary policy interest rate by 4.5 points to 15 percent.
Regarding the policy rate increase, CEO of Golomt Bank U.Ganzorig said, “The monetary policy interest rate of Mongol Bank was expected to decrease, and the loan interest rate could have been lowered in connection to inflation. But Mongol Bank raised the monetary policy interest rate, which has a negative impact by tightening the nation’s market.”
Invest Mongolia 2016 was attended by more than 1,100 people, including 200 foreign investors and 11 exhibitors from foreign countries. In 2017, the forum will prioritize the policies of the new president and investor relations with Cabinet and Parliament.
The forum will touch upon the economic and foreign direct investment outlook of Mongolia, the progress of development at Oyu Tolgoi’s underground mine, economic diversification, and the industrial and business development of Mongolia.