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Are you free on October 16? That’s when Ballet Night for Children’s Well-being takes place, a one-of-a-kind evening featuring classical and modern Mongolian ballet. All proceeds will help UNICEF replace coal-burning stoves in rural ger kindergartens, providing children with a healthier and safer environment. Don’t miss this chance to enjoy world-class ballet while making a difference. Get your ticket from HERE. 🩰🎟️

What’s inside today’s edition

• 💸 OTP Scams: ₮2.6 billion lost to online fraud

• ⚔️ MPP’s Leadership Crisis: Party at war with itself

• 🏦 Borrowing Gets Costlier: Loan rates show no sign of easing

No Time to Waste. Let’s Get Started! 🦘

MARKET

MNG: This year, 712 people lost ₮2.6 billion to one-time passcode scams.

GLMT: Golomt Bank signed $160 million financing agreement with the IFC to support water management, sustainable development, and small- and medium-sized enterprises in Mongolia.

MNG: The Ambassadors of Canada and Iran presented their Letters of Credence to the President.

BOM: Mongolia’s foreign currency reserves reached $5.9 billion for the first time in September.

🤐 Coal Controversy Rocks Mongolia’s Ruling Party

Last week, Mongolia’s political scene was thrown into turmoil as long-simmering tensions within the ruling Mongolian People’s Party (MPP) erupted into open conflict, exposing a widening rift between the executive and legislative branches.

• 💨 At the center of the storm lies the MPP’s leadership reshuffle. The party recently elected Parliament Speaker D.Amarbayasgalan as its new leader under a controversial internal rule change, a move that has put Prime Minister G.Zandanshatar,  just over 100 days in office, in an increasingly precarious position.

🛡️ Bold Appointment Amid Coal Scandal

On September 30, the PM announced the reappointment of B. Enkhbayar, a parliament member and former Minister of Justice, as Minister of Justice and Internal Affairs, citing the need for decisive action on the ongoing coal theft investigations. However, the appointment has yet to be presented to Parliament, as the Democratic Party refused to attend sessions until the ruling MPP resolves its internal conflict. 

• 📑 Constitutionally, the Prime Minister retains final authority over ministerial appointments, but the process requires the new minister to be formally presented to Parliament. That step never happened—before Enkhbayar’s nomination could even reach the floor, the MPP’s Central Control Committee expelled him from the party.

• 💥 The expulsion triggered an immediate backlash, with 7 MPs threatening to leave the party if the decision is not reversed.  

💥 Political Fallout and Party Divisions

The roots of the conflict trace back to former PM L.Oyun-Erdene’s resignation in June. Although he stepped down publicly, he never formally submitted his resignation to the authorities, allowing him to retain the party’s official seal. Within 3 months, on September 12, his close ally D.Amarbayasgalan unexpectedly declared his candidacy and secured victory in the MPP’s leadership election. With that victory, the former PM’s faction effectively regained control of the party, setting the stage for today’s political turmoil. T

🔮 What Lies Ahead… 

If the Supreme Court registers D. Amarbayasgalan as the MPP’s legitimate leader, it could pave the way for the current Prime Minister’s removal and mark the Speaker’s consolidation of power. Even before this scenario unfolds, several lawmakers are preparing a petition demanding the PM’s resignation today. The MPP’s internal feud has now evolved into a full-blown power struggle at the heart of Mongolia’s state machinery, raising questions about stability, accountability, and the party’s future direction.

⭐ Selected for you

ECONOMY & BUSINESS

• EuroChamber Mongolia to Host “Back to Business” Forum on Tuesday. (EuroChamber)

• Mongolia's Ulaanbaatar Metro Mandates Bank for ECA Deal. (TXF)

• Investors Can Find Comfort In MMC's Earnings Quality. (SimplyWall)

• Mongolia Exports Over 18,000 Tons of Meat, Meat Products in First 8 months. (XinhuaNews)

• GOBI Cashmere Has Launched Its Official Amazon Store. (GobiCashmere)

• Mongolia Has Submitted Its NDC 3.0, Committing to a GHG Emissions Reduction of 30.3% by 2035. (NDCPartnership)

POLITICS

• Genocide in Southern Mongolia: The Return of a Buried History. (BitterWinter)

• Parliamentary Proceedings Should Continue Despite the MPP Leadership Dispute. (UBPost) 

• Turkish MoD’s MKE Opens Ammunition Assembly Line In Mongolia. (TurDef)

• Vietnam-Mongolia Comprehensive Partnership Poised for Substantive Growth. (VOV)

CULTURE & LIFESTYLE

• Ancient Lakes in the Gobi Desert Supported Human Life 8,000 Years Ago. (ArchaeologyNews) 

• Mongolia Has Planted 114.6 Million Trees Since 2021 to Combat Desertification. (XinhuaNews)

💰 Borrowing Is Getting Costlier 

Borrowing costs in Mongolia remain stubbornly high, even as credit demand continues to grow among households and businesses.

🔺 Still Above 10%

Mongolia’s lending environment remains tight. The policy rate hasn’t dipped below 10% since June 2022, keeping both loan and deposit rates locked in the 10%–20% range for the past 5 years. In September 2023, when the policy rate stood at 13%, the average one-year ₮ deposit rate among the TOP-5 banks was 12.2%, now it hovers around 12%. Yet, lending rates continue to edge upward.

• 📌 Slow Growth, Rising Costs: Most banks, except TDB (TDB), have raised their salary loan rates. Among them, TDB shows the widest gap between its lowest and highest rates at 5.4 percentage points. Across the TOP-5 banks, salary loan rates have increased by 1.3 percentage points in the past 2 years. That means if you take out a ₮30 million loan for 30 months, you’ll pay about ₮975,000 more in interest than before.

• 📈 Business Loans Also Getting Costlier: Corporate borrowers are feeling the pressure, too. The weighted average interest rate on loans issued to sectors outside agriculture climbed by 1.1 percentage points in the first half of this year compared with the previous quarter, signaling broader tightening across the economy.

‼️ High Demand, Higher Pressure

While nominal wages are rising, persistent inflation continues to erode purchasing power, keeping demand for credit strong. Beyond the banking sector, total lending from non-bank financial institutions has surged 45.4% year-on-year, 4.2 times higher than in 2021, reaching ₮5.1 trillion, with interest rates also on the rise.

Bottom line… Even as growth slows, Mongolia’s appetite for credit remains firm, fueled by inflation, rising import costs, and a weakening MNT. With these pressures persisting, interest rates are unlikely to fall below 10% anytime soon.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.