▲ Up
 
10:29 27-07-2017
АКИpress CA-News Tazabek Turmush
ADVERTISE WITH US SUBSCRIBE
KazakhstanKyrgyzstanMongoliaTajikistanTurkmenistanUzbekistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
Mongolia says bank bondholders will be repaid in full
17:41, 02 December 2016, 2056
Twitterfacebookprint

AKIPRESS.COM - Development Bank of Mongolia bondholders can expect their debts to be repaid in full when they fall due next year, a senior finance official said on Friday, even as the state-backed bonds traded below par just three months before maturity, Reuters reports.

The International Monetary Fund is predicting zero growth this year for Mongolia's once promising economy, as a result of years of declining foreign investment, slower growth in China, and a softer market for its abundant coal resources.

The country pinned between China and Russia is reeling from a balance of payments crisis and a tumbling tugrik currency that the present government has blamed on mismanagement by the prior administration.

On Friday, Mongolian finance ministry officials held talks with groups such as the IMF and World Bank to present their plan to buoy the economy.

Deputy Finance Minister Khurelbaatar Bulgantuya told a news conference following the talks that Mongolia hoped to work with partners to refinance $580 million in sovereign-backed debt from the Development Bank of Mongolia due in 2017.

The government could lighten its burden on interest on loans with new "soft" loans that offer easier terms and lower interest for repayment, she said.

Renegotiating its debt for a smaller repayment on the principal, known as a haircut, "would be the last resort," she said. "With the IMF, we're looking to refinance."

The Development Bank bonds on Friday were trading below par at 97 - just months away from the redemption date in March 2017.

"The correction was triggered by President-elect (Donald) Trump's expected protectionist policies and frontier market outflows. The coupon is low and the price fall brings the yield in line with fair value," said a Hong Kong based credit analyst, requesting anonymity because he is not authorized to speak to the media.

Moody's Investors Service last month downgraded the country's rating to Caa1 from B3, citing heightened uncertainty on whether it could meet its debt obligations.

Mongolian officials have been in talks for a standby agreement from the IMF since a new government under Prime Minister Jargaltulga Erdenebat took power last June.

Mongolia tapped into a similar agreement in 2009 when it suffered from delayed effects of the global economic crisis, but that was before the government ever borrowed on international markets.

The government has issued and sponsored billions worth of debt since 2012, which has been directed partly towards the construction of roads, railway and other infrastructure.

China, Mongolia's number-one trade partner, could also take part in the bailout.

"Given the size of the challenges, we expect bilateral organisations, including China, to be part of the broad coalition to help Mongolia through these difficult times," said World Bank Country Director Bert Hofman.


Full access to all news articles in English

1 month2000 somsubscribe
year20000 somsubscribe
These subscription fees are for private individuals only. Please contact us via phone +996 (312) 900-776 or email info@akipress.org for corporate subscription inquiries
Twitterfacebookprint
LATEST NEWS
10:22 5 citizens of Uzbekistan injured in road accident in Russia's Saratov10:09 Revenues from communication services decreased by 26.5% in 6 months10:06 Turkish alpinist dies from heart attack on Kyrgyzstan's Khan-Tengri mountains10:00 India building collapse death toll rises to 1709:57 Russian president passes amendments allowing Kyrgyzstanis to work in Russia using Kyrgyz driver licenses09:55 Kyrgyz wrestler wins bronze at 2017 Summer Deaflympics09:43 Rescuers save Kyrgyzstani drowning in pond in Moscow09:42 OSCE trains Tajik border troops and Afghan border police officers09:33 Citizens of Kyrgyzstan accused of involvement in St. Petersburg metro bombing left under arrest09:31 Criminal case against man who blackmailed women threatening to expose their intimate photos sent to court09:16 Pakistan village council orders 'revenge rape' of girl17:23 'Turnover between Kyrgyzstan and Kazakhstan amounted to $339.3 mln in January-May' - Minister of Economy17:21 EU to open Delegation to Mongolia17:16 US moves one step closer to imposing fresh Russia sanctions17:14 Atambayev signs ratification of $20 mln loan from Saudi Fund for Development for North-South Road rehabilitation17:12 Kyrgyzstan ratifies agreement with Georgian on avoidance of double taxation16:57 Men who wanted give a ride to 24yo Polish woman in Issyk-Kul tell their versions of what happened16:55 11 civil servants from Kyrgyzstan to attend graduate school in South Korea16:52 Kyrgyzmani gains 4th place at Asian Weightlifting Championship in Nepal16:14 France wildfires force mass evacuation
© AKIpress News Agency - 2001-2017. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75