Government to issue 5 billion US dollar bond

The Parliament finally discussed a decree on whether or not to agree to issue a government bond. The 5 Billion US dollar bond was approved by 76.9 percent of members of parliament with 42 of 52 MPs approving the bond. Now the parliamentary decree has been passed it can be acted upon. The Government now has the ability to issue 5 billion US dollars into the international stock market in 2012 and 2013. First the Government will issue a 1.5 billion US dollar bond.

The bond must not be spent on care or budget deficit. It is supposed to be spent on long and medium term construction projects.

Before the parliament passed the decree, the opposition party MPP member Ts.Nyamdorj, said that “issuing such a great amount of bond is risky when the world faces potential financial recession. If the Government wastes the money, the people will feel the effects. In my opinion the bond will go through with any good result since the Government plans to spend it in every sector. In addition the parliament did not discuss measurements of outcomes and controls over the bond”

Z.Enkhbold, Speaker of Parliament told him that the Standing Committee on Economy must supervise the bond.

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