Mongolian government began to issue its bonds at a relatively low cost in 1996 with an aim to finance the state budget deficit.
Recently, the bonds worth 1.5 billion US dollars called “Chingis bonds” were succesfully traded on 28th of November and it is considered as the most successful and the biggest ever sale of bonds made by the Mongolian government at the world market.
The Mongolian State Great Khural has made the decision about issuing the governmental bonds to finance the biggest projects to be carried out in the near future and has authorized the government to sell bonds for 1.5 US dollars in 2013.
This is the first part of the bond programme of the Mongolian government to issue bonds worth a total of 5 billion US dollars. Now, the Mongolian government is liable to use the "Chingis" bonds in the most effective way. Economists considered that it is necessary to spend the money from the bonds for the new great constructions such as infrastructure, railways, paved-roads for building factories to process mining products and for reducing the interest rates of commercial banks.
Mongolia is focusing attention on avoiding economic dependence on mining and on boosting the infrastructure and industrial sector. In order to do this, it has been considered as necessary to attract and mobilize a big money from the capital market, and the first step on achieving this goal has been successfully completed. Moreover, it has proved that the economic situation in Mongolia is improving and its position at the international market is getting stronger.