Study On Sovereign Debt Risk In Mongolia

The country is currently facing a more serious debt problem,of which the government and the central bank already have debts of up to 40 % of GDP.If they are not properly resolved,it may form a more serious sovereign debt crisis.Therefore,it is very important for the stable and healthy development of Mongolian economy to analyze the negative impact of Mongolian sovereign debt situation on Mongolian economy and discuss the formation mechanism of sovereign debt risk.This paper will analyze the background of the study from the perspective of the current government and central bank debt,the huge demand for financial investment in the current economic development,and the inability of the financial system to provide more support to the government,and clarify the research goals of this paper.It also summarizes and analyzes the current research situation of Chinese and foreign scholars in related fields,so as to establish the research direction of this article.This paper analyzes the risk factors of Mongolian sovereign debt fr om the view of huge debt repayment scale,significant increase of debt in GDP,high dependence of government fiscal expenditure on debt,etc..The collapse in foreign trade caused a sharp drop in fiscal revenue to explain the emergence of huge debt service payments that squeezed the fiscal budget,and the significant decline in economic growth highlighted the fact that debt size explains the significant increase in debt as a proportion of GDP.The government expenditure debt dependence is higher from the point of view of the rigid growth of government expenditure and the high dependence of tax revenue on resource industries.This paper will put forward countermeasures to deal with the risks of Mongolian sovereign debt,and will change the single status quo of the export structure as a solution to the problem of debt repayment scale squeezing fiscal budget.To improve their investment climate to achieve economic growth as a response to the significant increase in the share of debt in GDP,The Belt and Road Initiative will be used to reduce the pressure on fiscal spending and improve the Mongolian government's tax system as a response to the high degree of debt dependence on government fiscal spending.