The Mongol Bank has released its third quarter report, looking at the overall macro-economic condition in the country. As stated in the report, Mongolia’s external debt has now reached USD 12.9 Billion. It means that there is a per capita debt of USD 4,506.
According to the report, both the private sector and government have increased their lending 43-44 percent, making the total debt 1.4 times more compared to that of the same period in last year. The current balance of external debt for the private sector stands at USD 9.9 Billion, whereas the borrowing of government and central bank is USD 3 Billion.
Almost doubling Mongolia’s GDP, the total amount of the current debt does not include the recent government borrowing of USD 1.5 Billion from sale of unsecured notes. However, a Mongolbank staff said in the Unuudur Daily that the fact that the external debt has been growing each quarter is quiet normal. Recently, Jan Hansen, an economist from Asian Development Bank, warned that Mongolia’s debt is equal to 24 percent of its GDP, and that borrowing from the USD 1.5 Billion bond sales is almost 15% of the GDP.