Mongolia is due to pay back 580 million euro bond in coming March. However, government doesn’t have this money. Therefore, it is said that authorities are going to borrow money from other countries and pay back this big debt.
However, so far, there are no countries that agreed to lend soft loan to our country. We interviewed Munkhbat Jamiyan, chairman of the cabinet secretariat.
-Mongolia is due to pay back 580 million Euro loan in March.
What are possibilities to pay back this debt?
-Mongolian economy is experiencing difficulties. It will be
hard to make cash payment. There are three options to pay back this loan.
First, cash payment, secondly, to postpone it in some way, third, officially
announce that can’t pay back. Of course, it is understandable that first and
third options are hard for Mongolia.
/Mongolian/ economy have little capacity to bear the cash
payment. If /we/ announce that can’t pay back the debt, it will create most
difficult condition for any country. Therefore, /we are/ discussing that second
option is most appropriate option that suits current economic condition of
Mongolia.
However, currently, no final decision has been made. Soon,
Head of IMF will come and official meeting will be held. Then, decision whether
to accept IMF program will be finally made within this month.
-How this 580 million Euro loan was spent?
-You’ve seen results of recent inspection of Development
bank and its situation.The loan was spent for financing of programs and
projects of last 4 years. The result of checks at Development bank are
presented to the Parliament and disclosed to public through media.
Government disclosed the 200 page inspection report for the
public.
-
So, is it correct to understand that the 580
million euro is misspent?
-Actually, /spending of/ bond money and loans of Development
bank are serious issues that violated laws. Working group set up by the
parliament are checking the results. According to our information, , working
group of law enforcement agencies to investigate the Development bank and the
ministry related bond and other loans have been set up. Therefore, the issue
will be resolved under this framework.
There were many issues at the Development bank that violated
laws and related to poor discipline during last 4 years. Because of these
issues, Mongolian economy is as it is now. Ended up unable to pay back the
loan.
-Recently, Speaker of the parliament visited Russian Federation
and Arabian countries. Russia said “ loan purpose is unclear and therefore, can’t
give loan” to Mongolia’s request of loan?
-I don’t know about this issue.Media is writing about it in
various ways. However, needs foreign
investment, loan and assistance in order to improve the economy. Therefore,
Government is working through its channel in many directions. It is true that
we accepted a country with much debt burden such as repayment of Chinggis Bond,
loan of Chinese People’s bank. Now we are working on to solve this issues.
-So, are talk about about delaying the loan already started?
-This issue can’t be decided by one day talk. Probably will
be decided after many meetings, talks and negotiations.
Source:Mongoliin Medee newspaper and Ikon.mn
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