Government Issues USD 500 Million Bonds, Saves MNT 51.7 Billion in Interest Costs www.montsame.mn

Government successfully issued “Century-5” bonds in the international financial market on March 3.

The USD 500 million bond was issued for a six-year term with an interest rate of 5.95 percent. As part of a debt management operation, the Government will use the proceeds to buy back USD 321.6 million of its previous bonds — the “Nomad” bond with a 5.125 percent interest rate due in 2026, and the “Century-2” bond with an 8.65 percent interest rate due in 2028.

By doing this, the Government reduced its high-interest debt that was due in 2028. It will save about USD 14.5 million, or MNT 51.7 billion, in interest payments. This will lower pressure on the state budget, help keep the exchange rate stable, and support overall financial and economic stability.

The bond was issued at a time when international financial markets were unstable due to recent military actions by the United States and Israel against Iran. 

The successful issuance shows that investors trust Mongolia’s economic outlook and debt management policy.

According to the Ministry of Finance, Mongolia was the only country issuing bonds in the international market during this period. Investor demand was very strong. Orders reached USD 1.6 billion, which is 3.2 times more than the amount offered, showing high interest in Mongolia’s bonds.

Government to Submit Revised Draft Law on State Secrets to Parliament www.montsame.mn

During its regular session on March 4, 2026, the Cabinet decided to submit to the State Great Khural a revised draft Law on State Secrets, a draft Law on Approving the List of State Secrets, and related legislative proposals.

The draft proposes renaming the current Law on State and Official Secrets to the Law on State Secrets and establishing a legal framework regulating only matters related to state secrets.

Deputy Minister of Justice and Home Affairs Munkh-Erdene Dembereltseren stated, “There are more than 894 items classified as official secrets. Once the Law on State Secrets is adopted, all of these will become public.”

Although the existing Law on State and Official Secrets stipulates that information must be lawfully and reasonably classified as state or official secrets, in practice, government agencies and officials have unlawfully and unjustifiably classified information as official secrets. This has negatively affected transparency and openness in state operations, undermined citizens’ right to information, and created conditions conducive to corruption and abuse of office.

The draft law therefore seeks to establish a legal environment ensuring that information held by government agencies — except for matters legitimately classified as state secrets — remains open and transparent.

Under the current law, information that could “cause harm to the interests of sectors, government bodies, or other legal entities” may be classified as official secrets. This broad formulation has significantly expanded the scope, type, and content of information that may be kept confidential and has enabled information to be classified based on narrow institutional interests. Accordingly, the draft removes all provisions related to official secrets from the law in their entirety.

Government Approves Air Services Agreement www.montsame.mn

During its regular session on March 4, 2026, the Cabinet approved the “Air Services Agreement between the Governments of Mongolia and the Republic of Bulgaria.”

With the approval of the agreement, Mongolian air carriers will have opportunities to expand operations in Bulgaria and European market. The agreement will also enable airlines to connect international transport and logistics network, expand flight routes, increase passenger traffic, and promote tourism. In addition, it is expected to contribute significantly to the development of bilateral relations, trade, economic ties, and cooperation between Mongolia and Bulgaria.

The agreement includes provisions on the designation of airlines, traffic rights, granting and revocation of operating permits, compliance with laws and regulations, fair competition, social and environmental matters, recognition of licenses and certificates, aviation safety and security, aircraft accident investigation, ground handling services, user charges, customs duties, capacity and tariff regulation, transfer of revenues, and codeshare arrangements.  

Border exit ban imposed on MP E.Bolormaa www.gogo.mn

An investigation has led a court to impose a travel restriction on E.Bolormaa, the Member of Parliament after prosecutors asked the judiciary to apply a preventive measure barring her from crossing the national border.

The law-enforcement agency has opened a criminal case and named the MP as a defendant in an inquiry into the offence of “obstructing the exercise of the right to vote and the work of the election commission” (Special Part, Criminal Code, Article 14.5, Part 2, Clause 2.3). The Metropolitan Prosecutor’s Office submitted a proposal to the court on February 28, 2026 asking that restrictions on leaving the country be imposed.

A judge at the District Court of First Instance for Simple Criminal and Civil Proceedings reviewed the prosecutor’s request and on March 3, 2026 ordered the preventive measure restricting the defendant’s ability to exit the Mongolian border. 

Ulaanbaatar Introduces Smart Cameras to Improve Traffic Flow www.montsame.mn

The introduction of a smart camera system in Ulaanbaatar has enabled more optimized traffic light regulation and improved the smooth and balanced management of road traffic.

Under the system, traffic flow is counted in real time, allowing for precise identification of traffic volume and direction, as well as the detection and monitoring of traffic violations.

According to the Traffic Management Center, the solution has made it possible to configure traffic signals at all regulated intersections and crossings with greater precision, reducing the need for manual control by 50 percent. As a result, the workload per officer has decreased and traffic flow has become more evenly regulated.

Previously, traffic lights at 50 intersections were manually adjusted an average of 4,500–4,800 times per day. The system now manages 93 intersections at a similar frequency, enabling broader and more efficient traffic coordination.

Foreign Minister Meets International IDEA Secretary-General www.montsame.mn

Minister of Foreign Affairs Battsetseg Batmunkh met with Kevin Casas-Zamora, Secretary-General of the International Institute for Democracy and Electoral Assistance (International IDEA), headquartered in Stockholm, during her official visit to the Kingdom of Sweden.

During the meeting, Minister Battsetseg noted that Mongolia has maintained active cooperation with the International IDEA and discussed ways to further enrich bilateral relations and collaboration through specific projects and programs.

In particular, the two parties agreed to cooperate in implementing the resolution initiated by Mongolia and adopted at the 11th session of the Conference of the States Parties to the UN Convention against Corruption on “Preventing and combating corruption through enhancing transparency in the funding of political parties, candidatures for elected public office, and electoral campaigns.” They also agreed to work together to ensure the implementation of the Memorandum of Understanding on establishing an Asian Regional Center for Election Observation in Ulaanbaatar.

Furthermore, Minister Battsetseg emphasized that the Institute's Global State of Democracy reports, research, and analyses on electoral processes serve as important resources for government institutions, research organizations, and policymakers in Mongolia and many other countries. The parties also discussed opportunities to expand cooperation in this area.

At the conclusion of the meeting, the Minister invited Secretary-General Kevin Casas-Zamora to visit Mongolia.

Ulaanbaatar-Shanghai Direct Flight Route Launched www.montsame.mn

One of China’s first private airlines, Spring Airlines, launched its direct flight on the Ulaanbaatar-Shanghai route on February 3, 2026.

Tickets for this flight are available on Spring Airlines' official application and WeChat Mini Program (Xiaochengxu). The tax-included price for a one-way ticket starts at USD 132.9. This pricing policy enables more accessible, affordable travel options for Mongolian passengers.

Sector professionals believe this new flight route will be an important boost for expanding tourism and business relations between Mongolia and China.

The airline will operate twice-weekly flights starting February 3, offering low-cost direct travel options for passengers from both countries.

Mongolian Railway Expands Coal Export Logistics with Mixed Transport www.montsame.mn

Mongolian Railway (MTZ), a state-owned shareholding company, has signed cooperation agreements with coal mining companies operating in the Tavantolgoi group of deposits and has begun providing combined rail and road transportation services.

The company signed cooperation agreements with Erdenes Tavantolgoi JSC and Energy Resources LLC to organize the transportation of export coal using an integrated rail and road logistics model, MTZ reported.

Since 2024, MTZ has been transporting coal traded by Erdenes Tavantolgoi on the exchange to Mandal border port through a mixed rail-road system. On February 5 this year, the company signed a combined rail and road transport agreement for shipments toward the Gantsmod border crossing and is commencing transportation under that agreement starting March 03, 2026.

In addition, combined transport from Energy Resources’ Ukhaa Khudag mine to Gantsmod border crossing began on the first of this month. MTZ is also set to conclude a transport agreement with locally owned Tavantolgoi JSC for shipments toward Gantsmod.

Under these arrangements, combined rail and road transport — including documentation processing — is now being organized from mine loading and unloading sites to the border crossings along the Tavantolgoi–Gashuunsukhait–Gantsmod and Tavantolgoi–Khangi–Mandal routes.

The new logistics structure is expected to improve coordination in coal exports, increase border crossing capacity, enhance logistics efficiency, and strengthen a stable and efficient transport system for coal exports.

Foreign Minister Battsetseg Visits Uppsala County in Sweden www.gogo.mn

 During her official visit to the Kingdom of Sweden, Minister of Foreign Affairs Battsetseg Batmunkh visited Uppsala County and met with several local officials.

Specifically, Minister Battsetseg held separate meetings with the Governor of Uppsala County, Stefan Attefall, and the Chair of the Uppsala City Council, Klas Herman Lundgren. The parties exchanged detailed views on opportunities to expand and develop relations and cooperation at the local level.

The minister noted that Mongolia places importance on regional development and on deepening cooperation and partnerships at the local level, and proposed mutually beneficial collaboration with Uppsala County in the fields of education, culture, agriculture, and sustainable development.

The Swedish University of Agricultural Sciences, a prestigious institution in Sweden, is located in Uppsala. The leadership of Uppsala County and the city expressed their readiness to cooperate with the university on specific projects and research initiatives, including sharing advanced technologies and innovative solutions in agricultural and crop production.

Policy Support to Boost Wool and Cashmere Exports www.montsame.mn

Prime Minister Zandanshatar Gombojav met with representatives of the wool, cashmere, and banking sectors on March 2 to discuss measures aimed at supporting exports and improving financing conditions.

During the meeting, the Prime Minister exchanged views with officials of the Bank of Mongolia and commercial banks on enhancing access to loans. He also addressed concerns raised by businesses in the wool and cashmere sector regarding stringent requirements for repaying previous loans before becoming eligible for new financing.

Representatives of the banking sector expressed their commitment to cooperating with and supporting exporters. They noted that the non-performing loan ratio has declined to 4.6 percent, marking its lowest level in the past 15 years. Governor of the Bank of Mongolia, Narantsogt Sanjaa stated that the possibility of issuing loans secured by reserved raw materials and major investment agreements, as well as introducing new financing products, will be studied.

At the conclusion of the meeting, the Ministry of Food, Agriculture and Light Industry was instructed to provide policy support for deep processing and spinning projects, facilitate businesses’ participation in major international exhibitions, and establish a unified wool and cashmere product sales center in the capital city.

It was also decided to organize a cashmere auction in Sukhbaatar aimag on March 21. The sector’s ministry has established a working group to oversee the preparations. In addition, the Ministry of Finance was tasked with studying and developing proposals on tax policy support measures.

In 2025, Mongolia exported 4,000 tonnes of combed cashmere, a 5.7-fold increase, generating USD 335 million in revenue.Of the country’s 6.8 percent economic growth in 2025, the agriculture sector accounted for 40 percent, driven largely by wool and cashmere exports.

The sector’s representatives believe that production capacity and export could be increased if support measures are provided, such as improving access to loans, including businesses in export promotion programs, and issuing loans secured by purchased raw materials and export contracts.