Mongolia’s public debt of 580 million dollars to be paid by March, public support
The country is mired in an economic crisis due to a collapse in foreign investment, a slowdown in trade with China and the low prices of raw materials. The Mongolian currency, the Turgik, this year lost nearly a quarter of its value.
Ulaan Baatar (AsiaNews / Agencies) - Mongolian citizens are donating goods such as gold, cash or cattle to the state to put together the 580 million US dollars needed to repay the government bonds maturing next month.
The cash-strapped country, is in the throes of an economic crisis due to a collapse in foreign investment, a slowdown in trade with China and the low prices of raw materials. The Mongolian currency, the Turgik, this year lost nearly a quarter of its value.
The government has held talks with China and with officials of the International Monetary Fund (IMF) for assistance. However, investors fear that liquidity injections into banks will fail to be negotiated by March, the month in which the payment of the bonds is expected.
Despite the Mongolian citizens facing welfare cuts, rising costs of food and fuel and the harsh winter that is threatening to kill large numbers of cattle, this week, after an awareness campaign launched by the parliament, donation forms are being distributed on a large scale.
Mongolian Prime Minister Jargaltulga Erdenebat said that although the government is willing to accept donations, it has already "found a solution" for the payment of bonds and would spend those funds differently. "The government - said the prime minister - may not prohibit the start of any campaign undertaken by citizens. The parliament has decided to spend voluntary donations by investing in health, education, the reduction of pollution and improvement of public infrastructure. "
Late last year, an official of the Mongolian Finance had stated that the country was trying to refinance the debt through low interest loans.
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