Mongolian external debt reaches 87 percent of GDP

International Monetary Fund (IMF) has agreed to loan US$ 440 million to the Government of Mongolia, as part of a $5.5 billion external financing package to support the authorities’ “Economic Stabilization Program,” which intends to restore economic stability and debt sustainability as well as to create the conditions for strong, sustainable, and inclusive growth, while protecting the most vulnerable citizens.

Other international partners also plan to support the government’s program: the Asian Development Bank (ADB), World Bank, and bilateral partners including Japan and Korea are together expected to provide up to $3 billion in budget and project support; and the People’s Bank of China is expected to extend its RMB 15 billion swap line with the Bank of Mongolia for at least another three years.

IMF estimated that the external debt to GDP ratio will be doubled than the international average.  

External debt of Mongolia will reach; 

• 86.3 percent of GDP by 2017, 
• 88.3 percent of GDP by 2018,
• 85 percent of GDP by 2019,
• 83 percent of GDP by 2020,
• 79.4 percent of GDP by 2021. 

Currently, external debt of the country is totaled US$ 23 billion.