Mongolia faces political crisis

Hundreds of protesters have gathered in Mongolia's capital after the country's biggest political party pulled out of the governing coalition.

The Mongolian People's Revolutionary Party withdrew its support for the government on Wednesday, blaming it for slow economic growth and inflation.

A parliamentary vote is expected later on Thursday on the government's fate.

Politics have been fluid but relatively peaceful in Mongolia since democracy was introduced in 1991.

The Mongolian People's Revolutionary Party (MPRP), led by President Nambar Enkhbayar, holds 38 of the parliament's 76 seats, while the rival Democratic Party, led by Prime Minister Tsakhia Elbegdorj, holds 34.

The two parties formed an uneasy alliance after the 2004 national elections.

More than half of the members of the Cabinet, all from the MPRP, handed in their resignations on Wednesday.

Row over economy

MPRP chairman M Enhbold said his party had made the decision due to a slowdown in economic growth and increasing inflation.

R Gonchigdorj, from the Democratic Party, accused the MPRP of resigning because the party's alleged corruption was about to be discussed by parliament, according to a local newspaper report.

The MPRP now wants to form a new government with minor party members, according to reports.

"I'm protesting to oppose this political mafia," demonstrator Gerlee, 78, told Reuters news agency.

"This decision to dissolve the government does not help the people, it goes totally against us."

The protesters gathered in the central square of Ulan Bator before storming the headquarters of the MPRP.

There were no initial reports of injuries.