Government bonds to expire in 2020 www.zgm.mn
21 bonds worth MNT 86.9 billion, which were traded before the Ministry of Finance closed government bonds in 2017 are about to expire this year. Accordingly, remaining yields and bonds will be fully settled for investors.
The government bond has been delayed after it had been traded in the domestic market for 28 weeks. The Ministry of Finance explained that the bonds should be discontinued to reduce the government’s debt in the domestic market and avoid the government’s acquisition of the assets of the banks.
The next two bonds out of 17 bonds worth MNT 59.2 billion will expire in 2023 and 2024. In specific, Chinggis bonds worth USD 1 billion will expire in 2022, Samurai bonds worth USD 300 million in 2024, and other bonds that were issued to pay the debt of Chinggis bonds will mature in 2022-2024. In the past few years, Mongolia spent USD 200,000 a day only to pay for bond yields.
Also, the Ministry of Finance plans to issue bonds at the Mongolian Stock Exchange basing on blockchain technology. In last year, preparations for trading government bonds with blockchain technology has started. In this regard, the government adopted a regulation on bond trading based on block technology.
Published Date:2019-09-11