Financial Times: Bit of a squeeze in Ulan Bator

While the rest of the world talks about monetary easing, in Mongolia, the resource-rich nation of 3m, there is a credit crunch. Mongolia’s GDP grew at more than 15 per cent last year, sparking fears of overheating and inflation concerns that have prompted the government to tighten monetary policy. As a result, banks have faced a liquidity crunch since last autumn and commercial loans are hard to come by in Ulan Bator these days. Mongolia recently raised capital adequacy ratios and interest rates in a bid to cool inflation, which has become a hot political issue with the Mongolian election coming up this summer. To read the full article, click hereBit of a squeeze in Ulan Bator

This entry was posted in Mongolia News. Bookmark the permalink.

Comments are closed.