Government to manage sovereign wealth fund

Ulaanbaatar /MONTSAME/. Today, January 9, Parliament backed draft resolution on measures following the new amendments to the Constitution of Mongolia. The resolution is aimed at coordinating the concepts and visions set out in the recent amendments to the Constitution with corresponding legislations, carrying out law reform, and promoting their significance to the people of Mongolia. When adopting the resolution, the Parliament granted the rights and responsibilities of overseeing the sovereign wealth fund to the Government of Mongolia. Concerning the decision, the government will be in charge of establishing the sovereign wealth fund, composed of development and accumulation funds, and managing their financial capitals as a primary shareholder. The Constitution of Mongolia amended in November 2019 states that the land except that in citizen’s private ownership, as well as the subsoil with its mineral wealth, forests, water resources, and game is the property of the public and State. Benefits from the subsoil wealth shall be collected to the sovereign wealth fund and be distributed fairly. Funding for the sovereign wealth fund is considered to be coming from mining royalty fees, dividends of government shares, revenues from stock trading, revenues from oil and natural gas production sharing agreements and net income from investment of the fund.