The Chinggis bond is named after the country's 13th century ruler Chinggis Khan, more widely known as Genghis Khan. Mongolia's prime minister, Ukhnaa Khurelsukh, was shown making the first money transfer in person on the official website of the Mongolian government on Friday. The central bank lowered its benchmark interest rate by one percentage point to 11 per cent in late December, as abating macroeconomic risks gave policymakers some scope to encourage investment.
The prime minister identified a $5.5 billion bailout agreement signed with the International Monetary Fund last year as a critical factor in helping improve the country's risk profile. Mongolia turned to the IMF amid fears that it could default on its debts. The deal required Ulaanbaatar introduce austerity measures such as higher tax rates, which take effect this month as well as cuts to social welfare.
A spokesperson from the Ministry of Finance did not immediately respond to requests for comment. The IMF said in December that Mongolia was on a path to recovery with its economy outpacing growth expectations, despite budget cuts, driven by strong coal trade. Fitch Ratings in November revised its outlook on Mongolia to "positive", affirming its 'B-' rating, while Moody's maintained its sovereign credit rating for Mongolia at "Caa1 stable".
Coal was the main driver of growth in 2017 on the back of higher prices paid by number-one trade partner China. GDP growth over the year has been estimated at 3.8 percent, Mongolia's government website said.