AKIPRESS.COM - The Financial Regulatory Commission approved Ulaanbaatar to publicly offer bonds worth of up to 500 billion tugriks 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, Montsame reported.
Head of the Financial Regulatory Commission D. Byambasuren handed over the consent resolution to 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 capital city bond is unique as the first local bond in Mongolia. In order to finance specific development programs, Ulaanbaatar has become ready to issue bonds and offer them to the market within the scope of the law. We will report on our project, program and funding in conformity with relevant regulations and laws in due time," First Deputy Governor J. Sandagsuren said.
Public trading of bonds with maturities of up to five years to solve the economic and social problems of Ulaanbaatar 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.