Debt-plagued Mongolia accepts IMF condition to refinance existing loan

Mongolia has agreed to implement an economic rescue package proposed by the International Monetary Fund (IMF) and refinance bond loans, easing the nerves of international investors and the business community fearing Mongolia might go default on its loan in March.
"The Mongolian government agreed to issue another commercial bond to replace the current 580-million-U.S. dollar bond due to be matured in March 21, 2017 at the suggestion of IMF," Mongolian Finance Minister Choijilsuren Battogtokh said on Sunday.
Koshy Mathai, the IMF mission chief for Mongolia, said the two sides reached an agreement on the program under the Extended Fund Facility.
It covers a period of three years, with 440 million dollars in financing from the IMF, and about 3 billion dollars from bilateral and multilateral partners, he said.
He added that this was a staff agreement only and was subject to confirmation of financing from the partners to the program and a few "prior actions."
The negotiation with the IMF lasted six months and was concluded at 1:30 a.m. local time on Sunday (1730 GMT Saturday), the Mongolian finance minister said, calling it a tough negotiation.
The minister listed three main conditions Mongolia has agreed upon.
"The 2017 budget has to be revised before the IMF executive board approval of the program. Secondly, the Mongol Bank must stop financing the mortgage scheme and transfer responsibility for the scheme to the government. Thirdly the Mongol Bank must stop any funding activities that fall outside the budget," he said.
The program is expected to be implemented in several stages when Mongolia revises its taxation laws and reduces social welfare spending which are conditions of the IMF program.
The looming 580-million-dollar bond was issued five years ago by the Development Bank of Mongolia with government guarantee. Most of the loans went to show-case projects such as construction of public roads and heavy industrial plants with no prospect of immediate returns.
Mongolia's total debt stands at 21.6 billion U.S. dollars including government loans, government guarantees and private company loans.
Mongolia's largest international bond, known as the Genghis Bond raised in late 2012, is due to be repaid in installments in 2018 and 2022. Endi

Source:Xinhua news agency
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic