▲ Up
06:19 29-06-2017
АКИpress CA-News Tazabek Turmush
Mongolian bond prices jump following $440 million IMF bailout
16:56, 22 February 2017, 3645

AKIPRESS.COM - The price of Mongolia’s benchmark 10-year bond rose after the announcement on Sunday that the International Monetary Fund will lead a bailout the nation, Bloomberg  reports.

The yield declined and the price of the bonds due in 2022 rose more than 4 cents by 1:50 p.m in Hong Kong, after the news of a $440 IMF million loan package as part of a $5.5 billion bailout. The tugrik was little changed at 2,482 per dollar compared to 2,483 on Friday.

Mongolia’s sixth IMF bailout since 1990 follows a downturn in prices for copper and coal, the two main export commodities. The budget deficit soared and disputes with investors including Rio Tinto Plc led to a collapse in foreign investment and depleted foreign exchange reserves.

The IMF’s Extended Fund Facility will support the Economic Stabilization Program, a long-term plan to tighten fiscal policy, diversify the economy, depoliticize the Development Bank of Mongolia and strengthen governance at the central bank. The facility will also help Mongolia repay looming debts, including a $580 million DBM bond due next month.

After that bond, the nation has $641 million due next year, for a total of $2.2 billion to be repaid, according to Keiko Utsunomiya, a spokeswoman for the IMF.

Mongolia is keen to avoid the boom-bust-bailout cycle it’s experienced in recent years, the IMF Mission Chief for Mongolia, Koshy Mathai, said in an interview on Sunday with Bloomberg Mongolia TV.

Gross domestic product is expected to expand eight percent by 2019, and then grown at around five to six percent after that due to new mining projects and output from the Oyu Tolgoi copper mine.

“Asking that Mongolia’s economic growth be stable forever is a very big challenge because there are so many mining exports and so many concentrated to one particular market," said Mathai. "That is why the government has emphasized many of these institutional reforms in order to make sure that fiscal policy remains strong."

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
17:40 Tajikistan to consider law obliging relatives of officials to report income sources17:35 Parliament approves ratification of agreement with EBRD on remediation of tailings in Kyrgyzstan17:30 Qatar condemns Saudi refusal to negotiate over demands17:22 'Kyrgyzstan and Russia are strategic allies and partners' - Atambayev17:16 China, Kyrgyzstan hold anti-terror drill in Xinjiang17:01 Uzbek women and children subjected to sex trafficking in Middle East — U.S. State Department17:00 International Development Association to allocate $400,000 for improvement of Bishkek heat supply system16:42 Construction of waste sorting plant discussed in Bishkek16:37 6 religious organizations exempt from military service in Kyrgyzstan16:28 State budget revenues amount to almost 55 billion som16:24 CIS Interior Ministers sign documents on fighting illicit drug trafficking16:11 Turkmen-Japanese trade-economic cooperation committees meet in Japan15:55 Kyrgyzstan and EU hold Human Rights Dialogue in Brussels15:52 Speaker of State Duma lays wreath at Eternal Flame in Bishkek15:50 Tajikistan not fully meet minimum standards of fighting trafficking in persons — report15:33 State Duma Speaker necessitates resolution of Kyrgyz labor migrants' problems15:14 Russia to send observer mission to monitor presidential elections in Kyrgyzstan15:12 'Russia has always been and will be Kyrgyzstan's reliable partner' — Parliament Speaker15:00 Relations between Kyrgyzstan and Russia time-proven: State Duma Speaker14:57 Budget deficit amounts to 4.9 billion som in January-May 2017
© 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