The Standing Committee on the Economy discussed on
Tuesday developments at the Mongolian Stock Exchange. The London Stock Exchange
has been awarded the job of restructuring it and is being paid USD14.2 million
for the work. The State Property Committee borrowed this amount from commercial
banks for 3 years at 6.5 percent annual interest. The Government has guaranteed
repayment.

Several MPs felt this was a pointless expense, but the
Government wants strategic deposits-related shares to be traded on the MSE and
feels this would not be possible without the planned restructuring. The
Government and the State Property Committee are agreed that it is essential to
develop the domestic capital market to access funds in the international market.

Members of the committee wanted to know when the value of
the 536 ordinary shares of Erdenes-Tavantolgoi every citizen will receive is to
be announced. The Financial Regulatory Authority is dealing with the issue and
will take a decision within this year.