A false statement would cost Mongolia 10 million USD, said the President of Mongolia
On December 06, 2012, the Government of Mongolia officially announced that the Chinggis Bonds worth of 1.5 billion USD
were successfully traded on the international market. Accordingly, the President of Mongolia Tsakhia ELBEGDORJ called all responsible authorities to his office room discussing the current trade held and ordered officials to work with precaution, prudently and utmost to be liable.
At his room the Speaker of the Parliament Zandaakhuu ENKHBOLD, Prime Minister of Mongolia Norov ALTANKHUYAG, Parliamentarians Batkhuu GARAMGAIBAATAR (Chairman of Economic Standing Committee
), and Tserenpil DAVAASUREN (Chairman of State Budget Standing Committee), Members of the Cabinet
, Nyamjav BATBAYAR (Minister for Economic Development), and Chultem ULAAN (Minister for Finance), Chief of Staff of the President Puntsag TSAGAAN, Secretary of the National Security Council Tsagaandari ENKHTUVSHIN and the Governor of the Central Bank Naidansuren ZOLJARGAL were present.
President Ts.Elbegdorj stressed,
“On December 03rd of 2012, the National Security Council of Mongolia issued an open recommendation tilted ‘Some measures to take regarding the Government Bonds’. Mongolia has traded its Bonds. The capital has been deposited into the Government Account.
First of all, I want to point out that Mongolia has to become a responsible country from now on including its head of state the President following the Premier, Speaker of the Parliament, Government Members and civilians are also included. Particularly, any statement released by any officials now becomes utmost important by its meaning of truth. Actually, the political ideas intended populism, fake information or anticipation flushing foreign investors is not acceptable for Mongolia anymore. If anyone voices a false statement, it will be repaid greatly. In other words, if a member of the Parliament makes an irresponsible statement it would cost 10 million US Dollars’ debt to the people of Mongolia, which means all Mongolians will be included.
In the Recommendation addressed to the Parliament, we (National Security Council of Mongolia) included two directions:
First, the necessary additional legal environments for utilization of the Government Bonds, pay back and monitor must be provided within this Plenary Session (Autumn).
Second, any selected project or program financed by the Government Bonds trading must be introduced and approved through the Cabinet meeting.
The capital sourced from the Bonds will be spent at first for profitable and guaranteed repayable large scale infrastructure, industry and projects that are directed to Mongolia’s independent economy and strengthen its security.
Moreover, the money is not allowed to cover the Budget Deficit
or Current Expenses or Social Welfare. We will repay the money in the Account, it is not a zero-coupon bond, hence the interest rate is counting from today. In detail, we have to pay about 70 million USD for interest on capital annually. After 5 years we have to pay back about 500 million USD and in the following 10 years to compound another 1 billion USD. Therefore, we have to spend as much as possible risk-free in those profitable projects. In order to prevent the possible risks, the Policy Council must be formed and the next priority direction is the selected project or program, must be open and liable that contains and follows the Government Policy.
Moreover, the next Cabinet following the next Parliament Elections (2016) has no right to say “This was wrong or We will not pay”. If not paid, the Government Bonds of Mongolia will be passed to another nation or authority, finally Mongolia would be threatened under dependence of another one.
Consequently, Mongolia pledges its reputation on the international scale".
President of Mongolia called all responsible authorities to his office,
December 06, 2012