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FinObservatory

Sovereign haircuts / MNG

Mongolia

One concluded restructuring, settled in 2017. It left creditors 9.6% better off in present value than the claim it replaced, in the same year as the default that began in 2017.

1
Restructurings
-9.6%
Median present-value haircut
-9.6%
Worst present-value haircut
1 of 1
Cut face value by zero
$502M
Debt treated (2020 $)

Every restructuring

Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.

-200204060801002017Year the restructuring concluded
Present-value haircutFace-value reduction
DefaultSettledYears to settlePresent-value haircutFace-value reductionDebt treated (2020 $)Source
201720170-9.6%0.0%$502MAuthors' Calculations

Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology

Bond prices

0 of 1 Mongolia restructuring episode have Waterloo prices during the restructuring interval

The haircut file dates episodes by year. Waterloo matches them by country code and plots a padded window from one year before default through one year after settlement.
The public Waterloo bond panel in this repo runs from Jan 1, 1822 to Dec 1, 1980. This selector uses price only, never pbid or pask, and shows one line per bond from one year before default to one year after settlement. The author README defines price as “bond price in GBP and USD”; it does not document normalization to face value. Across all 329 haircut episodes, 111 have no Waterloo country-code match and 177 start after Dec 1, 1980. Those two counts overlap. 1 of 1 episode starts after the panel ends. 1 episode has no Waterloo country-code match.
Selected episode: default 2017, settled 2017, case 324, spell MNG_2017-2017. Window: Jan 1, 2016 to Dec 31, 2018.
The Waterloo panel has no country code match for Mongolia (2017-2017), so this episode cannot be plotted from that dataset. The absence is coverage, not a zero price.

Mongolia has restructuring episodes on this page, but none has a covered Waterloo price observation inside its restructuring interval in the public parquet bundled with this repo.

Each option includes its case id and default-spell id. The chart includes every priced bond for that country in the window, so it does not identify bonds belonging to the selected restructuring. The one-year padding is a display window, one year either side; an editorial choice rather than a source-defined threshold. It uses waterloo_bonds.price only; pbid and pask are not averaged into it. The author README defines price as “bond price in GBP and USD” and does not document face-value normalization. GBP and USD observations use separate labelled panels and y-axes. Of the 329 episodes in the haircut file, 111 have no Waterloo country-code match and 177 start after 1980-12-01; these counts overlap. Later episodes show an absence message rather than an implied zero.

Source: Meyer, Reinhart & Trebesch, Sovereign Bonds since Waterloo (bond-price panel) | Harvard Dataverse, Sovereign Bonds since Waterloo Methodology

Default spells

SpellFromToYearsRestructurings
MNG_2017-20172017201711

Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology

Debt still in default

The Bank of Canada-Bank of England default database records no debt in default for Mongolia in its latest year.

Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology

Methodology, the measures, and what this data cannot tell you