Coalition Break-Up Signals More Confrontational Election

The break-up of Mongolia's ruling coalition suggests that both major parties are likely to commence their campaigning ahead of June's parliamentary election. Should tensions between both the Democratic Party and the remaining Mongolian People's Party continue to rise ahead of the vote, we caution that the policy-making process in Mongolia could suffer as a result and hurt the country's political risk profile. We have revised down our short-term political risk ratings accordingly.

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