Financial Regulatory Commission Permits to Issue Ulaanbaatar City BondEconomy
Ulaanbaatar, September 5, 2023 /MONTSAME/. The Financial Regulatory Commission approved the Capital City of Ulaanbaatar to publicly offer bonds worth of up to MNT 500 billion in compliance with the Law on the Legal Status of the Capital City of Ulaanbaatar, the Law on Debt Management, the Budget Law, and other legislation and regulations by the Resolution No.427 of September 1, 2023.
Yesterday the Head of the Financial Regulatory Commission D. Byambasuren handed over the consent resolution to the First Deputy Governor of Ulaanbaatar in charge of economic and infrastructure issues J. Sandagsuren.
The collected funds will be used for the investment projects and measures specified in the city budget approved by the resolution of the Capital City Citizens Representatives Meeting, and quarterly reports will be submitted to the Financial Regulatory Commission.
The First Deputy Governor of the Capital City J. Sandagsuren said, "The capital city bond is unique as the first local bond in Mongolia. In order to finance specific development programs, the Capital City of Ulaanbaatar has become ready to issue bonds and offer them to the market within the scope of the Law on the Legal Status of the City of Ulaanbaatar. We will report on our project, program and funding in conformity with relevant regulations and laws in due time."
Thus, public trading of bonds with maturities of up to five years with the aim of raising funds to solve the economic and social problems of Ulaanbaatar City has begun. Funds collected through bond issuance are planned to finance major strategic projects and measures such as decentralization of the capital, reducing congestion, expanding the network of highways and road facilities, and improving access to schools and kindergartens.