Mongolian local media outlets have recently published articles concerning default risks. The Minister of Finance B.Javkhlan reassured the country’s financial capacity and replied, “Mongolia remains free of default risks with proper fiscal policies and debt management strategy.” Mongolia is obligated to complete the remaining USD 136.8 million debt repayment of the “Chinggis” bond in 2022. The Ministry of Finance also reaffirmed to repay on due.

Mongolia’s total debt stood at USD 33.8 billion as of 2021, of which government debt accounts for 25 percent, or USD 8.5 billion. As for 2023, Mongolia is expected to pay USD 841 million in foreign debt repayment. According to the government’s debt management strategy for 2023-2025, the Mongolian Government plans to implement debt regulation measures without compromising the stability of the state’s fiscal and monetary policies.

The Mongolian government’s debt-to-GDP ratio has steadily declined since 2016, reaching 50.8 percent at the end of 2021.

International credit rating agencies, such as ‘Fitch’ and ‘S&P’ kept Mongolia’s credit rating unchanged at “B” with a “stable” outlook in May and July of 2022, after evaluating the main macro-economic indicators such as Mongolia’s short, medium, and long-term policies, economic potential, its growth, foreign currency reserves, and economic outlook.