Thursday, August 21, 2014

Mongolia’s foreign debt reaches 19.88 billion USD

Debtless Mongolia non-government organization (NGO) warned that the total foreign debt of Mongolia has reached 19.88 billion USD, or 37.7 trillion MNT, and accordingly, each citizen carries debt of 12.89 million MNT, according to the USD exchange rate on August 18.

The national debt amounts to 215 percent of 2013′s GDP and 184 percent of 2014′s expected GDP. A total of 4.5 billion USD of the foreign debt belongs to the government and 1.41 to the Central Bank. The government’s debt increased by 3.1 billion USD. Director of the NGO Ch.Enkhbat emphasized that 401.3 million USD of the government debt was soft loans from partner countries and international banks and financial organizations, whereas the rest was commercial loans. He criticized the government for trading bonds and getting commercial loans instead of using the opportunity to get soft loans of an additional one billion USD. Members of the NGO commented, “We ought to pay 580 million USD debt to Development Bank and 500 million of the Chinggis Bond in 2018, and the remaining one billion USD of the Chinggis Bond in 2022. We can pay these debts in time only if GDP grows by 15-18 percent annually. But we have no fundamentals to produce such growth, thus proving that Mongolia has undergone debt burden.” The NGO said it will send a statement to the government and parliament members who are responsible for supervising the government and impose responsibility.

Source: Unuudur


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