Ministry of Finance and Mongolbank Approve Government Bond Policies

Government officials note that the release of Government Bonds will serve an important role in the short term plan to overcome current budget-related issues and the long term plans to finance some projects and programs to reduce their bond risks and, most importantly, to develop the government bond marketing as well as bond trading.

Government bonds will support the primary market as well as secondary market and the continued trading will set an exemplary interest rate which will then influence the setting of loan interest rates for enterprises in the bond market, according to officials.

The short term government bond functions similarly to the Central Bank’s bonds by working as basic assets to implementing a monetary policy. The approval of the government bond policy will serve an important role in correlating finance and monetary policies, which mean the Ministry of Finance and Mongolbank will work closely in the future, as noted by officials.

The President of Mongolbank N.Zoljargal and the Deputy Minister of Finance S.Purev and other affiliated officials were present at the event.

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