Mongolia to begin paying foreign debts from 2021 www.news.mn
The Mongolian economy will face challenges in 2021 when repayment of foreign debts begins, J.Delgersdaikhan has said. The specialist, who is a lecturer at the the University of Finance and Economics was speaking at a conference entitled the ‘Balance of Payments and Foreign Debts’. The conference was held at the Tuushin Hotel at the incentive of the Central Bank of Mongolia.
The Mongolian Government debts have risen from over USD 4 billion to USD 7 billion. The country issued its first ever bond in 2012. However, Mongolia’s credit ratings and interests on debts have changed gradually over the 2012-2016 period. Mongolia issued the famous Chinggis Bond with 5.175 percent interest in 2012; increased to 11.7 percent in 2016. During the period, Mongolia’s credit ratings have been downgraded 3-4 times and interest on foreign debts have risen by 2.6 times.