Mongolia to pay Russia USD3 million as final settlement of dues - News.MN

Mongolia to pay Russia USD3 million as final settlement of dues

Old News! Published on: 2010.10.18

Mongolia to pay Russia USD3 million as final settlement of dues

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Г. Нэргүй
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Talking
of Mongolia’s monetary debt to the Soviet Union and its successor state, Russia,
Minister of Finance S.Bayartsogt said on Friday that it was computed in 2003,
based on exchange parity between the MNT and the rouble, that between 1949 and 1991
Mongolia had borrowed MNT9.6 billion and the interest on it was MNT2.2 billion.
The total to be repaid thus stood at MNT11.8 billion.

The
then Prime Ministers of the two countries,  N.Enkhbayar and  S.Kasiyanov, negotiated the issue and it was
decided to deduct from the total the MNT260.3 million Russia had given to the
Erdenet factory and the interest on this. The total amount to be repaid was
then agreed to be MNT11.4 billion. Russia then agreed to write off 97.8% of the
“great debt”, as it was named. Mongolia was left with 2.2% to pay, but it was
understood that the amount would be adjusted against the accounts of the two
countries’ joint venture Mongolrostsvetmet.

However,
just before the visit of President Medvedev to Mongolia in September, 2009,
Moscow announced that Mongolia was still to pay back the 2.2%. It was decided
during the visit that the debt issue would be resolved within two months.
Russia repeated its claim at a meeting of the World Bank in Istanbul in
October, 2009.


Since then, three rounds of bilateral talks on
the issue have been held and after further adjustments, it has now been agreed
between the two finance ministries that Mongolia will pay Russia USD3 million,
pending approval by both Governments. The Mongolian Government has recently done
so.



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