Government debt rose by 1.7 times between 2015-2019Economy
Ulaanbaatar /MONTSAME/. In 2015, total government debt was MNT 14.4 trillion and it increased by 54.5 percent in 2016 to MNT 22.3 trillion, reaching MNT 23.9 trillion in 2019. It means the total government debt increased by 1.7 times between 2015-2019.
External debt accounted for 54.6 percent of total government debt in 2015, but the share of external debt increased every year, hitting 85.5 percent in 2019, according to "Economic Security" survey released by the National Statistics Office (NSO).
Fiscal Stability Law initially required the government debt ratio to GDP to maintain at 40 percent. However, the law was amended in 2015 and 2016, increasing the debt ratio to GDP to 60 percent and put off the entry into force to 2021.
The government debt ratio to GDP was 1.6 times higher than the original 40 percent limit in 2015, 2.3 times higher in 2016, 2 times higher in 2017, 1.7 times higher in 2018, and 1.6 times higher in 2019.
Total repayments reached equal to 46.3 percent of budget revenues and 12 percent of GDP in 2015, while in 2017, it reached a record high of equal to 82.3 percent of budget revenues and 27.6 percent of GDP.
In 2021-2024, the following outstanding debts for government-issued bonds are expected to be repaid:
Mazaalai bond - USD 500 million,
Chinggis bond - USD 1 billion,
Khuraldai bond USD - 600 million,
“Gerege bond” - USD 800 million.