Randolph Koppa, Vice Chairman, BCM and President, Trade and Development Bank

1. BCM legislative Working Group
Informal Meeting
Randolph Koppa, BCM Vice Chairman
May 20, 2014

2.  Stability of laws
 Suddenly enacted laws
 Vaguely drafted laws
 Unclear country strategy
 Poor investor relations
 Use of bond proceeds
 Fiscal and monetary policy

3.  Laws on foreign investment have changed
twice in recent two years.
 New Investment Law is viewed favorably, and
there was considerable consultation with the
private sector, but…
 Lack of resolution of OT discussion raises
question about stability agreements.

4.  Windfall profits tax
 Long named law
 SEFIL
Recent drafting and enactment of laws shows
these concern are being addressed.

5.  World Economic Forum options
 China slowdown
 Russian relations
 Third neighbor policy
Maybe 100 day plans are good for local
consumption, but the foreign investment
community needs a longer term vision.

6.  Legal protections for foreign invested firms
 Lack of information to institutional and other
investors
 3 billion reasons why investors are watching
Mongolia
 Speak to ALL constituents
 Trial by FT and WSJ
 Conference no-shows

7.  Mongolia is now eyeing the world for
investment.
 The world has also been eyeing Mongolia;
some of the world has lost patience and
needs to be re-engaged, while the rest
eagerly looks for reasons to consider acting
on the investment opportunities Mongolia
offers.
 Clear, consistent messages, laws and actions
are key.

8.  How were Sovereign bond proceeds applied?
 What is progress on infrastructure?
 Fiscal deficit exceeding 2%
 Monetary policy of BoM
 Balance of trade, foreign exchange reserves
 Foreign direct investment
 Debt to GDP
 OT
All the above impact secondary market pricing.