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In an interesting development in Mongolian politics, President Kh.Battulga recently approved appointment of the new Cabinet of Prime Minister U.Khurelsukh. All candidates were approved, save one.

In accepting the new Cabinet, the President make clear some reservations. Pointedly, the President expressed “regret” that the new Cabinet appointees are all also members of Parliament. The President reiterated the different roles of Parliament as a legislative body and the Cabinet as an executive body. It was even suggested that appointment of all Parliamentarians conflicted with constitutional principles. The candidate for the position of Minister of Finance, however, was not approved. The President cited connections of the candidate with the mining industry as the reason for not approving this appointment.

The Parliament went on to vote approval of all ministers, including the Minister of Finance.

Opposing parties in Parliament issued statements disapproving of the composition of the new Cabinet.

In an unrelated development, there are new reports that the Government of Mongolia has engaged international banking institutions to assist in the issuance of new Government Bonds.

The situation appears to be politics as usual in Mongolia, with the hope that these polical matters don’t hurt confidence of foreign investors.