Selected Policy Measures Against the Debt Distress in Mongolia

Abstract

The objective of this report is to examine the public external debt sustainability of Mongolia, and to propose appropriate regulatory actions for ongoing debates about economic reform. Following sharp external shocks that include a drop in foreign direct investment and a depreciation of the national currency, the country is at a critical moment of determining whether to default on its external debts or correct structural policy failures. Therefore, it is important that Mongolia identify its level of debt distress and determine which structural reforms should take place.