Today, a joint forum was held between World Bank and Ulaanbaatar City Government under the agenda “Bond: A new source of financing”. City Mayor E.Bat-Uul announced that the City Government is planning to issue municipal bonds. City Government has been working with the World Bank in the past year to facilitate the necessary preparations. Deputy Director of City Government’s Economic Department N.Bataa mentioned that depending on state budget for city’s renovation and development is limited, reasoning that municipal bond is the answer.
First, the city of Ulaanbaatar, capital of Mongolia, with the population of over 1.2 million, will have to establish credit ratings by international agencies. Soon after the ratings, the City Government will submit and seek approval from the government. The main goal is to support SMEs; officials emphasized.