Ministry of Finance reports Mongolia has 20.9 trillion MNT in outstanding debt

The Ministry of Finance reported that, as of the first quarter of 2017, Mongolia has 20.9 trillion MNT in outstanding debt, 66.5 percent (13.9 trillion MNT) of which is external, 24.5 percent domestic debt, and the remaining 8.9 percent debt guaranteed by the government.

In the fourth quarter of 2016, the nation's debt stood at 22.2 trillion MNT. In accordance with the Law on the State Budget, the nation's debt was not supposed to exceed 80 percent of the GDP in 2016, and came in at 79 percent. In 2017, debt is not supposed to exceed 85 percent of GDP, and currently accounts for 72.7 percent of GDP.

Ministry officials have explained that they have fulfilled the requirements put forth by the Law on the State Budget. The Ministry of Finance noted that it was able to postpone repayment of the first bond guaranteed by the government by restructuring the debt and transferring the notes of 82 percent of bondholders to the new Khuraldai bond issued by the government.

With official approval of Mongolia's enrollment in the International Monetary Fund's bailout program and a financial package of 5.5 billion USD, economists are hopeful that Mongolia will be able to revive its economy and reduce the nation's debt pressure.