In his first 4 years in office, he overlooked a total of 4 DUC prime ministers, frequent scandals and government crises.

His first PM, Mendsaikhany Enkhsaikhan, the 17th Prime Minister of Mongolia, serving from July 1996, resigned in April 1998 due to growing tensions between him and other party leaders in the DUC.

[9] During the ensuing government crisis, prominent figure of the 1990 Revolution and Member of Parliament, Sanjaasürengiin Zorig was assassinated in October, thousands mourned his death and to this day, the case still remains unsolved.

Price of russian fuel exports to Mongolia was lowered and bilateral economic cooperation was expanded following the signing of the Ulan Bator Declaration the next day.

[13] During a period of remarkable developments in the relationship between the United States and Mongolia, Many visits and meetings between the two sides were made during Bagabandi's presidency.

[14] During his visit, the two sides discussed about a wide range of bilateral issues from combatting global terrorism to promoting democracy and expanding trade and economic cooperation.

[16] In the aftermath of the 9/11 attacks, Mongolia became one of the 48 countries in support for the US-led "Coalition of the willing" in the US 2003 Iraq Invasion and showed remarkable commitments in peacekeeping despite its small size.

After the end of his presidential term, Bagabandi became a low-profile figure in politics and published several volume of books about meditation and philosophy, called "Crown Words" (Mongolian: Титэм Үгс, romanized: Titem Ügs).