Identifier
Created
Classification
Origin
06ULAANBAATAR845
2006-11-29 07:37:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ulaanbaatar
Cable title:
AMBASSADOR PAYS COURTESY CALL ON NEW BANK OF
how-toVZCZCXRO0998 RR RUEHLMC DE RUEHUM #0845 3330737 ZNR UUUUU ZZH R 290737Z NOV 06 FM AMEMBASSY ULAANBAATAR TO RUEHC/SECSTATE WASHDC 0566 INFO RUEHBJ/AMEMBASSY BEIJING 5313 RUEHLO/AMEMBASSY LONDON 0066 RUEHML/AMEMBASSY MANILA 1268 RUEHMO/AMEMBASSY MOSCOW 1629 RUEHUL/AMEMBASSY SEOUL 2542 RUEHKO/AMEMBASSY TOKYO 2300 RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUEANQT/FINCEN VIENNA VA RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC 0404 RUEKJCS/SECDEF WASHDC
UNCLAS ULAANBAATAR 000845
SIPDIS
SENSITIVE
SIPDIS
DEPARTMENT FOR EAP/CM AND EB/IFD
LONDON AND MANILA PASS USEDS TO EBRD AND ADB
E.O. 12958: N/A
TAGS: EFIN PREL PINR MG
SUBJECT: AMBASSADOR PAYS COURTESY CALL ON NEW BANK OF
MONGOLIA GOVERNOR BATSUKH
REF: ULAANBAATAR 0290
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION.
UNCLAS ULAANBAATAR 000845
SIPDIS
SENSITIVE
SIPDIS
DEPARTMENT FOR EAP/CM AND EB/IFD
LONDON AND MANILA PASS USEDS TO EBRD AND ADB
E.O. 12958: N/A
TAGS: EFIN PREL PINR MG
SUBJECT: AMBASSADOR PAYS COURTESY CALL ON NEW BANK OF
MONGOLIA GOVERNOR BATSUKH
REF: ULAANBAATAR 0290
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION.
1. (SBU) The Ambassador, accompanied by DCM, paid a courtesy
call November 27 on recently appointed Bank of Mongolia (BOM)
Governor A. Batsukh. After congratulating Batsukh on his
appointment last month, the Ambassador noted the USG had
worked with the GOM and the BOM on several issues, including
anti-money-laundering (AML) and anti-corruption legislation,
among others. He observed that the Treasury Department was
considering technical assistance options in a number of
areas; Batsukh welcomed such prospects. Batsukh said that
this week the BOM would set up a Financial Intelligence Unit
(FIU) and would soon name its head, as AML was a priority for
the BOM. He said the Asia Pacific Group would begin a peer
review of Mongolia's anti-money-laundering system beginning
in December.
2. (SBU) The Ambassador noted that Mongolia has relatively
high interest rates of 20% to 25%. Batsukh replied that
inflation was a key factor built into the interest rates and
that inflation had dropped from around 10% in 2005 to 5.3% in
2006. He expected this trend would eventually affect
Mongolian expectations and help bring down both inflation and
interest rates. Risk factors also influence interest rates,
Batsukh said, adding that problems with loan disclosure and
collateral also contributed to high interest rates. He
expressed gratitude for USAID's support in the creation of a
Mongolian Mortgage Corporation consortium of 10 banks which
will also help reduce lending costs (see reftel). Mongolia
hopes to offer it's first swap in January 2007.
International Department Director Odongua sought the
Ambassador's views on the prospects for the completion of a
Millennium Challenge Compact.
MINTON
SIPDIS
SENSITIVE
SIPDIS
DEPARTMENT FOR EAP/CM AND EB/IFD
LONDON AND MANILA PASS USEDS TO EBRD AND ADB
E.O. 12958: N/A
TAGS: EFIN PREL PINR MG
SUBJECT: AMBASSADOR PAYS COURTESY CALL ON NEW BANK OF
MONGOLIA GOVERNOR BATSUKH
REF: ULAANBAATAR 0290
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION.
1. (SBU) The Ambassador, accompanied by DCM, paid a courtesy
call November 27 on recently appointed Bank of Mongolia (BOM)
Governor A. Batsukh. After congratulating Batsukh on his
appointment last month, the Ambassador noted the USG had
worked with the GOM and the BOM on several issues, including
anti-money-laundering (AML) and anti-corruption legislation,
among others. He observed that the Treasury Department was
considering technical assistance options in a number of
areas; Batsukh welcomed such prospects. Batsukh said that
this week the BOM would set up a Financial Intelligence Unit
(FIU) and would soon name its head, as AML was a priority for
the BOM. He said the Asia Pacific Group would begin a peer
review of Mongolia's anti-money-laundering system beginning
in December.
2. (SBU) The Ambassador noted that Mongolia has relatively
high interest rates of 20% to 25%. Batsukh replied that
inflation was a key factor built into the interest rates and
that inflation had dropped from around 10% in 2005 to 5.3% in
2006. He expected this trend would eventually affect
Mongolian expectations and help bring down both inflation and
interest rates. Risk factors also influence interest rates,
Batsukh said, adding that problems with loan disclosure and
collateral also contributed to high interest rates. He
expressed gratitude for USAID's support in the creation of a
Mongolian Mortgage Corporation consortium of 10 banks which
will also help reduce lending costs (see reftel). Mongolia
hopes to offer it's first swap in January 2007.
International Department Director Odongua sought the
Ambassador's views on the prospects for the completion of a
Millennium Challenge Compact.
MINTON