Bank of Mongolia announced that total foreign debt of Mongolia has reached USD 30.6 billion. In other words, foreign debt of the country is higher 3 times than total economic amount. Also, International Monetary Fund warned that Mongolian foreign debt is higher 5 times than average debt amount of other countries.
Central Bank estimated that the country will pay down USD 14 billion debt next four years. Of which corporate bond and treasury bond payments composed major part of the debt. In particular, government debt composed USD 3.4 billion (MNT 9.5 trillion). For instance, Mazaalai bond payment to be paid down in 2021 is USD 500 million and debt of syndicated loan is USD 250 million.
Mongolian economy has been an unstable and state budget revenue has been fallen due to the pandemic. Therefore, above foreign debts are the biggest challenge for Mongolian government. Therefore, government should make a plan to pay down the debts. However, the country will be a possibility to refinance or extend the maturity of above debts.
Below debts will be paid down next four years.
|№||Bond name||Total amount||Interest rate||Maturity|
|1||Mazaalai bond||USD 500 mln||10.8%||2021 /April/|
|2||Syndicated loan||USD 250 mln||4.9%||2021 /December/|
|3||Chinggis bond||USD 1 bln||5.125%||2022 /December/|
|4||MIK LLC||USD 300 mln||9.75%||2022 /January/|
|5||Gerege bond||USD 800 mln||5.6%||2023 /May/|
|6||Samurai bond||JPY 30 bln||1.5%||2023 /December/|
|7||Development Bank bond||USD 500 mln||7.25%||2023 /October/|
|8||MMC LLC||USD 440 mln||9.25%||2024 /April/|
|9||Khuraldai bond||USD 600 mln||8.7%||2024 /March/|