This Week's Top News /2020.01.06-2020.01.08/
THIS WEEK’S TOP STORIES
Bill on repayment of the pension-backed loan to be submitted
The Cabinet today decided to submit a Bill on full and one-time repayment of all pension loans to the Parliament for very urgent consideration.
Out of the 421.1 thousand pensioners that are currently receiving pensions, 229.4 thousand pensioners (54.5 percent) have taken loans worth MNT 763.3 billion in total. It is considered that elderly people who have no earning except their pensions receive pension loans and pay loan interest; thus they are likely to easily suffer poverty. For the reason of their incapability to meet their daily necessities, the seniors get the loan again and have no way of getting out of the loan debt. It leads them to the ‘circle of debt’ and undergo financial and psychological pressure.
The repayment of the remainders of the pension loans is planned to be resolved by means of issuing bonds by putting the expected profit from the Mongolian government’s share at Salkhit deposit as collateral.
Salkhit deposit has an identified reserve of 808.3 tons of silver and 1117.1 kg gold that is estimated to have a net profit of MNT1050.4 billion. Further, pension loan issuance is intended to be completely stopped.
Mongolian Cultural Center to be opened in Turkey
The bilateral relations and cooperation between Mongolia and the Republic of Turkey have been expanding rapidly in recent years. In particular, the opening of direct flight in route Ulaanbaatar – Istanbul – Ulaanbaatar which started from January 1, 2020, reflects the dramatic development of cooperation of the two countries in the tourism sector. Minister of Culture and Tourism of Turkey Mehmet Nuri Ersoy is to visit Mongolia in March to boost the cooperation further.
In the framework of the cooperation, the Mongolian Cultural Center in Turkey and the Turkish Cultural Center in Mongolia will be established respectively in order to promote the culture of the two countries as well as to deepen the cooperation.
MIAT Mongolian Airlines reduces its fares
Mongolian national flag carrier MIAT Mongolian Airlines is operating flights in one domestic and 12 international destinations with Boeing 767 and Boeing 737 jet airliners as of today. Mongolian air transport demand is heavily affected by the seasonality with high air traffic in summer and 2-3 times decrease during the winter season. Going along with the seasonal fluctuations, MIAT Company has reduced its main tariffs by 7 percent and seasonal flight prices by 37 percent, as reported by the Mongolian Ministry of Road and Transport Development. “The Company is taking a series of measures to lower its prices further down”.
One of the busiest flight routes is between Mongolia and South Korea and as of today, MIAT Company is performing direct flights in the route of Ulaanbaatar-Seoul and Ulaanbaatar-Busan, Korean Air and Asiana Airlines between Ulaanbaatar-Seoul and Air Busan between Busan-Ulaanbaatar. Moreover, domestic air carrier Eznis Airways is planning to operate a direct flight to Busan starting March 2020.
According to the Ministry of Road and Transport Development, the total number of passengers in international routes on the Mongolian air transport market reached 1 million and around 400 thousand in domestic routes in 2019. Among them, MIAT company alone carried around 700 thousand passengers.
All in all, this week looks to be an eventful week. Many new updates regarding a controversial bill on repayment of the pension-backed loan. Mongolia’s international relations are expanding and have opened our cultural center in Turkey. And for our travelers’ good news, Mongolian national flag carrier MIAT Mongolian Airlines has reduced its main tariffs by 7 percent and seasonal flight prices by 37 percent, as reported by the Mongolian Ministry of Road and Transport Development.