Mongolian revises law to increase debt-GDP ratio

The Mongolian Parliament on Tuesday revised law to increase the debt-GDP ratio in response to the economic crisis.

With about 2.36 billion U.S. dollars of foreign debt, the Parliament approved that the amount of total debt would be 58.3 percent of the gross domestic product (GDP). The previous law sets the debt ceiling at 40 percent of GDP.

Now Mongolia's foreign reserves are falling as its mineral export value dropped due to lower commodity prices in the world market. More than 90 percent of Mongolian exports consist of coal, copper and other minerals.

Analysts warn that Mongolia may default in April 2017 unless it borrows again. Endi