ABOUT FOREIGN DEBTS OF MONGOLIA

Ulaanbaatar, Mongolia /MONTSAME/ The government of Mongolia plans to reduce the external debts to 80 per cent, and the size of loans from foreign countries to 50 per cent in 2012-2014 stage by stage. It has been reflected in a report of Mongolia's economic, financial and budgetary situations which is issued by the Ministry of Finance. According to this report, the government will reduce an amount of debts by 50 per cent by the year 2014. In addition, the government intends to develop the market of domestic debts in several phases so as to provide the governmental financial needs with the lowest size of expenditures, and to make up 50 per cent of the financial resources from domestic debt market. These matters are reflected in the middle-term strategic document on debt management for 2012-2014 adopted in this year. This document also reflects ways of realizing the goals and structure of debts. As of today, the debt crisis pressure of Mongolia was 3-11 per cent between 2008 and 2011, and it was three per cent in the last year. It means that the debt crisis pressure is considerable low. By end of the previous year, the Mongolia's government used foreign loans of MNT 257.9 billion granted by donor countries and international financial organizations. Then, foreign debts of MNT 76.9 billion has been repaid, and the balance of the government's credit repayment was MNT 2,650.9 billion at the end of 2011. In 2011, the size of external debts was equal to 28.3 per cent of the Gross Domestic Product by the current price. Thus, Mongolia is considered as a country with a low-risk of foeign debts in frames of the criteria by the International Monetary Fund (IMF) and the World Bank (WB). B.Khuder