Ulaanbaatar
Mongolia to repay USD 2.9 billion external debt in 2021-2023
Politics
Ulaanbaatar /MONTSAME/ On January 25, during the plenary session of the parliament, a response was provided to MP D.Erdenebat’s inquiry to the Prime Minister on the intervention regarding exchange rate growth, coordination of monetary and fiscal policies and the government debt.
Minister of Finance
Ch.Khurelbaatar said “As of today, the official exchange rate of the US dollar
equals to MNT 2636. In 2018, the export volume amounted to USD 7 billion and
the trade turnover to USD 12.8 billion. Moreover, external trade balance showed
a surplus of USD 1.1 billion. Mongolia’s external debt made up 74.4 percent of
the country's GDP at the end of 2017 and the ratio decreased to 60.9 in 2018.
In 2019-2020, Mongolia will be under relatively low debt pressure.”
MP B.Battumur asked
about how the central bank’s deficit will be eliminated and the government’s
policy on balancing exchange rate of Tugrik.
“The government’s action on reducing external debt
results decrease in exchange rate. Mongolia will repay USD 500 million debt of
Khuraldai Bond in 2021, USD 1 billion of Chinggis Bond in 2022 and USD 800
million and USD 600 million of Gerege Bond in 2023. In general, the country
will settle a total debt of USD 2.9 billion within four years. The Ministry of
Finance is planning to extend the repayment period to ten years. By doing so it
will not only prevent increase in the exchange rate, but also play important
role in attracting foreign investment,” Minister of Finance Ch.Khurelbaatar stressed.
Deputy Governor of the
Bank of Mongoia B.Lkhagvasuren noted the bank has worked efficiently in
2017-2018, reducing its deficit of MNT 3.4 trillion to MNT 1.8 trillion.
MP B.Choijilsuren
questioned why World Bank’s USD 120 million fund and JICA’s USD 284 million
fund have not been provided. The Minister of Finance answered funding of the
joint programs with IMF is being provided thoroughly and that JICA’s fund will
be received after the new airport becomes operational in July.
