The Government of Mongolia to Issue Securities on the Domestic Market
Economy
Ulaanbaatar, April 4, 2025 /MONTSAME/. The Ministry of Finance of Mongolia will begin openly trading domestic government securities on April 16, 2025, to support the securities market and establish a benchmark interest rate for tugrug bonds in the financial market. This will mark the first time in eight years that such securities will be offered.
The Government of Mongolia is offering investors reliable, low-risk, and highly liquid securities that provide stable returns with tax-free interest income. A key advantage for bondholders is the ability to use their bonds as collateral for payments and other guarantees.
Initiating the trading of these domestic securities is pivotal. It will help establish a benchmark base yield rate and ensure bond valuation aligns with international standards. Furthermore, it's expected to foster the development of the domestic bond market and increase participation from professional investors, including open-ended and closed-ended mutual investment funds.
The Financial Regulatory Commission of Mongolia views the launch of trading for these domestic securities as a major catalyst that will boost the engagement of individuals and businesses in the capital market.