China yesterday assured to help Mongolia in its financial problems after Mongolian Foreign Minister Tsend Munkh-Orgil met his Chinese counterpart, Wang Yi here.(Reuters)

Debt-ridden Mongolia has reaffirmed its commitment to the One-China policy and sought support from Beijing after bilateral ties were disrupted following the visit of Tibetan spiritual leader Dalai Lama to the landlocked country last year. China yesterday assured to help Mongolia in its financial problems after Mongolian Foreign Minister Tsend Munkh-Orgil met his Chinese counterpart, Wang Yi here.

Tibet is an inseparable part of China and Tibet-related issues are China’s internal affairs, Tsend Munkh-Orgil said after meeting Wang Yi.

This was Tsend’s first visit to Beijing after bilateral relations were disrupted by the Dalai Lama’s visit to the landlocked country in November.

China retaliated by various measures including cancellation of meetings to provide financial assistance to Mongolia to alleviate its debt burden.

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Since then Mongolia made efforts to repair ties with China and promised it would never allow future visits by the Dalai Lama, state-run Xinhua news agency reported.

Hailing the Mongolian foreign minister’s statement, Wang said it was important for the two countries to boost ties from a new beginning.

The two countries should outline high-level communication, synergise China’s Belt and Road Initiative with Mongolia’s Prairie Road program and promote cooperation in various fields, Wang said.

Munkh-Orgil said the Belt and Road Initiative would bring great opportunities for Mongolia’s development, adding that Mongolian Prime Minister Jargaltulga Erdenebat will visit China and attend the Belt and Road forum for international cooperation in May.

He also thanked China for its support during Mongolia’s financial difficulties. Mongolia had also approached India for assistance.

China’s assistance included providing favourable loan terms to Mongolia and extending a bilateral currency swap deal that is vital to Mongolia’s foreign trade and currency stability, state-run China Daily said.

The International Monetary Fund said on Sunday that Mongolia has agreed to implement an economic rescue package proposed by the IMF and refinance bond loans, easing concerns that Mongolia might default on a loan in March.

China supports the aid by international financial institutions to Mongolia, and it will also consider Mongolia’s hope to expand exports of mineral, agriculture and husbandry products to China, Wang said.

Since Mongolia is trying to avoid missing a USD 580 million sovereign-guaranteed debt repayment due in March, the IMF said in its statement on Sunday that the Asian Development Bank, World Bank and bilateral partners, including Japan and South Korea, will provide up to USD three billion in aid, the daily said.

People’s Bank of China, the central Bank of China, will extend a currency swap line to Mongolia worth 15 billion yuan (USD 2.18 billion), it said.