Mongolia to pay Russia USD3 million as final settlement of dues
Talking of Mongolia’s monetary debt to the Soviet Union and its successor state, Russia, Minister of Finance S.Bayartsogt said on Friday that it was computed in 2003, based on exchange parity between the MNT and the rouble, that between 1949 and 1991 Mongolia had borrowed MNT9.6 billion and the interest on it was MNT2.2 billion. The total to be repaid thus stood at MNT11.8 billion.
The then Prime Ministers of the two countries, N.Enkhbayar and S.Kasiyanov, negotiated the issue and it was decided to deduct from the total the MNT260.3 million Russia had given to the Erdenet factory and the interest on this. The total amount to be repaid was then agreed to be MNT11.4 billion. Russia then agreed to write off 97.8% of the “great debt”, as it was named. Mongolia was left with 2.2% to pay, but it was understood that the amount would be adjusted against the accounts of the two countries’ joint venture Mongolrostsvetmet.
However, just before the visit of President Medvedev to Mongolia in September, 2009, Moscow announced that Mongolia was still to pay back the 2.2%. It was decided during the visit that the debt issue would be resolved within two months. Russia repeated its claim at a meeting of the World Bank in Istanbul in October, 2009.
Since then, three rounds of bilateral talks on the issue have been held and after further adjustments, it has now been agreed between the two finance ministries that Mongolia will pay Russia USD3 million, pending approval by both Governments. The Mongolian Government has recently done so.
The then Prime Ministers of the two countries, N.Enkhbayar and S.Kasiyanov, negotiated the issue and it was decided to deduct from the total the MNT260.3 million Russia had given to the Erdenet factory and the interest on this. The total amount to be repaid was then agreed to be MNT11.4 billion. Russia then agreed to write off 97.8% of the “great debt”, as it was named. Mongolia was left with 2.2% to pay, but it was understood that the amount would be adjusted against the accounts of the two countries’ joint venture Mongolrostsvetmet.
However, just before the visit of President Medvedev to Mongolia in September, 2009, Moscow announced that Mongolia was still to pay back the 2.2%. It was decided during the visit that the debt issue would be resolved within two months. Russia repeated its claim at a meeting of the World Bank in Istanbul in October, 2009.
Since then, three rounds of bilateral talks on the issue have been held and after further adjustments, it has now been agreed between the two finance ministries that Mongolia will pay Russia USD3 million, pending approval by both Governments. The Mongolian Government has recently done so.
Comments
Post a Comment