Government plans to raise 346 billion MNT in bonds in Q2

Oyundelger 2017-05-12 08:05

Economy

The government issued bonds as part of their plan to raise 346 billion MNT in the second quarter of 2017.

Government plans to raise 346 billion MNT in bonds in Q2. The government issued bonds as part of their plan to raise 346 billion MNT in the second quarter of 2017. Approximately 26 billion MNT will be raised from bonds in May. Analysts note that the sale of bonds has increased as the government has decided to complete transactions through the Mongolian Stock Exchange. In the first two months of 2017, Mongolian citizens were responsible for 30 percent of the capital raised from bonds, while foreign investors accounted for only 2.5 percent of the capital. Based on increased demand, the government has begun to decrease the interest rates of bonds. Officials have noted that demand for the most recent bond issued is double the supply. Currently, the annual savings interest rate at commercial banks is 15 percent. Economists note that while interest payments for savings and government bonds are essentially the same, taxes are not imposed on bonds and that buyers are only required to pay a brokerage fee.