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Good morning from the other side of Mongolia’s longest holiday! 🇲🇳 How was your Naadam break? Did you manage to recharge, or are you still mentally somewhere on the steppe? There’s a Mongolian saying that “Autumn arrives right after Naadam,” a playful reminder that once the celebrations end, it’s time to return to business. 

The tents come down, the horses go home, and the spreadsheets quietly start calling again. So, welcome back to the business world. Here’s what moved while Mongolia was celebrating Naadam. 😎🪭

What’s inside today’s edition…

• 🇹🇯 Tajik President Lands in Mongolia

• 💰 DBM’s Road Back to Lending

• ✈️ Thales Brings New Era to Mongolia’s Air Traffic

We’ve got a lot to cover, so let’s get moving. 🐐

MARKET

EBRD: EBRD to provide $40 million to Tavanbogd Construction Machinery to finance the construction of a modern integrated facility, including a state-of-the-art rebuild and maintenance workshop, a warehouse for Hitachi equipment, office space, and associated working capital.

MNG: Coal exports for all uses totaled 59.2 million tonnes in the first half of 2026, up 56% from a year earlier.

GOV: President of Tajikistan Emomali Rahmon will pay a state visit to Mongolia from July 20 to 22.

🏃🏻 DBM’s Comeback: From Debt Cleanup to Lending Revival

The Development Bank of Mongolia is poised for a major comeback, resuming policy lending after 4 years of restructuring and heavy reliance on debt repayment. In a strong signal of renewed market access, the bank marked its return to the public markets in June with its first US dollar deal since 2018.

📉 DBM’s Dark Years: From Policy Powerhouse to Paralysis

The Development Bank of Mongolia (DBM), the country’s sole policy bank, was once a key financier of strategic infrastructure and export projects. But a 2021 special audit by the Bank of Mongolia exposed severe asset quality problems, with non-performing loans (NPLs) surging to around 60%.

• 💔 Since early 2022, DBM halted new lending entirely, shifting focus to debt recovery and refinancing. Over 8 years, it relied on private placements while working through a mountain of bad loans, severely limiting its ability to fulfill its development mandate.

🔄 The Turnaround: Capital, Bonds, and Reform

DBM has staged a strong comeback in 2026. The government injected ₮1.5 trillion in capital, while the bank successfully issued a $500 million 5-year senior bond in June, its first public US dollar bond since 2018, at a 7.2% yield, restoring its access to international capital markets. 

• 🧣 Beyond its financial turnaround, Deputy CEO A.Enkhjin said the bank is also undergoing broader institutional reforms. A new law expected by year-end will strengthen governance, expand central bank oversight, and formalize government support through mandatory recapitalization when needed.

💰 Back to Business: Lending Resumes

DBM has already approved several new loans this year, often in partnership with institutions like the IFC. Key deals include a $100 million contribution to a railway bypass project around Ulaanbaatar and financing for solar and battery storage initiatives. Furthermore, the bank plans to focus on energy, infrastructure, transportation, and export-oriented sectors to boost Mongolia’s competitiveness and energy independence.

🔮 The Road Ahead: Frequent Issuer Ambitions

DBM aims to become a regular issuer in the US dollar bond market, targeting at least another $500 million in 2027. It will also debut in the local MNT bond market later this year, reducing forex risk and appealing to frontier-market investors.

Overall… With commodity prices remaining strong and debt-to-GDP at around 40%, DBM sees favorable conditions for reviving policy lending. The bank also expects the medium-term economic outlook to remain positive, with stronger lending demand paving the way for more frequent bond issuances. 

⭐ Selected for you

ECONOMY & BUSINESS

• Korean Convenience Stores Draw Lines in Mongolia as Retailers Expand. (SeoulEconomicDaily)

• Explorer.Company Launches Fall Self-Drive Tours Timed to Mongolia’s Eagle Hunter and Horse Festivals. (DemocratandChronicle)

• More than 80 Tourists Arrive on First Charter Flight Connecting Umnugovi Province and Japan. (gogo)

• Azzuro Accelerates Mongolian Copper Search. (StockHead)

POLITICS

• Korea Eximbank Partners with Mongolia to Boost Korean Consumer Goods Exports. (TheKoreaTimes)

• KIGAM and Mongolia Expand Supply Chain Cooperation on Rare Earths and Lithium. (DongAScience)

• Lee Meets Mongolia's No. 2 and No. 3 to Advance 'Golden Age' Vision. (TheKoreaHerald)

CULTURE & LIFESTYLE

• Horsing Around? How One Company Moved 121 Mongolian Horses Between Ulaanbaatar and Hanoi. (EconomyClass&Beyond)

• From Nail Salons to the Met Gala, Mongolian Americans are on the Rise. (AsAmNews)

• Suspected Antisemitic Assault of Israeli Tourists in Mongolia. (IsraelNationalNews)

✈️ France’s Thales to Modernise Mongolia’s Air Traffic System

Thales has been selected by Mongolia’s National Civil Aviation Center (NCAC) to deliver a major upgrade of the country’s air navigation infrastructure, marking a significant step in strengthening aviation safety, capacity, and resilience.

• 🤑 Financing is backed by a flexible arrangement between BpiFrance and the Trade and Development Bank of Mongolia (TDBM).

🛠️ Next-Generation Dual Control Centers

The project includes the deployment of a next-generation dual Area Control Center (ACC) architecture. This involves modernising the existing ACC in Ulaanbaatar and building a new one in Sainshand to provide system redundancy and enhanced operational performance. The upgrade will also significantly bolster cybersecurity, a critical need for aviation infrastructure worldwide.

• 🙄 Why Sainshand? Sainshand was strategically chosen for the new Area Control Center to create system redundancy and boost resilience for Mongolia’s air traffic network. Located in Dornogovi province along the Trans-Mongolian Railway, it is a key transit and industrial hub in the Gobi region. 

• 🧩 The project also supports France-Mongolia cooperation, including Orano’s major uranium mine at Zuuvch-Ovoo, which will drive future logistics and economic growth in the area.

🇫🇷🇲🇳 France-Mongolia Cooperation in Action

The initiative reflects deepening France-Mongolia cooperation, timed with the 60th anniversary of diplomatic relations. It combines advanced French technology with structured skills transfer through the École Nationale de l’Aviation Civile (ENAC). Mongolian professionals will receive training in Toulouse, while ENAC instructors will support capacity building in Ulaanbaatar.

🌍 Impact on Mongolia’s Aviation Future

The modernisation is expected to improve airspace capacity, reduce delays, and support the growth of both domestic and international flights, key for tourism, business connectivity, and Mongolia’s long-term economic ambitions.

Finally… For a country with vast territory and growing air traffic, reliable and future-proof air navigation systems are essential. This partnership positions Mongolia to meet rising demand while maintaining high safety and security standards.

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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.