Mongolian bond prices jump

Oyundelger 2017-02-22 09:02

Economy

The price of Mongolia’s benchmark 10-year bond rose after the recent announcement that the International Monetary Fund will lead a bailout to Mongolia.

Mongolian bond prices jump. The price of Mongolia’s benchmark 10-year bond rose after the recent announcement that the International Monetary Fund will lead a bailout to Mongolia. The yield rose more than 4 cents in Hong Kong, after the news of a $440 IMF million loan package as part of a $5.5 billion bailout. Mongolia’s sixth IMF bailout since 1990 follows a downturn in prices for copper and coal, the two main export commodities. 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 bond of Development Bank of Mongolia which is due next month. 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.