The BoM reports that there are no major debt payments expected in the last two quarters of 2018. The central bank stresses that this will not burden on foreign exchange reserves that the tugrik rate will be stable. In 2018, when tax revenue increases and GDP growth intensifies, the Government needs to pay MNT 2.6 trillion in principal payments and MNT 1.2 trillion in interest payments, or a total of MNT 3.8 trillion debt. MNT 2.7 trillion of which was settled in the first seven months of the year, including the ‘Chinggis’ and ‘Dim Sum’ bonds payments.

In 2018, the USD 836 million will be phased out in Mongolia under the ‘Extended Funding Program’ of the International Monetary Fund. This is higher by USD 100 million from last year. In addition, the USD 5.5 billion funding from international organizations and donors will be phased out in Mongolia until 2020 in scope of the ‘Extended Funding Program’.

According to the Central Bank, the balance of payments is expected to surge to USD 200-300 million by the end of the year. This means that the official foreign exchange reserves can increase this amount. As of the first half of 2018, Mongolia’s foreign exchange reserves have reached USD 2.9 billion, a 2.5-fold increase from the same period of the previous year.

Source: BloombergTv.mn