The Government of Mongolia reported that the external debt of the Government reached USD 7,024 million in the third quarter. This is a 12 percent increase comparing to the same period of the previous year. As of the end of 2017, the Government debt outstanding had reached 74.4 percent of GDP. In the first half of 2018, this figure has fallen to 58.9 percent of GDP.

According to the Ministry of Finance, the current ratio of government debt to gross domestic product is expected to reach 55.3 percent in 2019. Interest payment is expected to decrease by MNT 285.1 billion. The government plans to use MNT 1.3 trillion in foreign loans and grants this year. According to the structure of the government debt, most of them are long-term bonds.

In view of the major anticipated payments, the ‘Syndicate’ loan is scheduled to be paid in 2021, the ‘Mazaalai’ bond in 2021, and the ‘Chinggis’ bonds in 2022, totaling about USD 5.4 billion.

In addition, the Central Bank has said it will continue to expand its foreign exchange reserves. As of October, the official foreign exchange reserves have reached its last six-year highs or USD 3.4 billion. The government has reported that it has been working on its debt management.

This year the S&P agency has upgraded Mongolia’s long-term credit rating to “B” and keeps its status “Sustainable”.

Source: BloombergTv.mn