IMF reaches new loan agreement with Mongolia
It is the agreement for a three-year Extended Fund Facility loan for approximately $440 million, in response to the decline in commodity prices and a collapse of foreign direct investment.
IMF reaches new loan agreement with Mongolia. It is the agreement for a three-year Extended Fund Facility loan for approximately $440 million, in response to the decline in commodity prices and a collapse of foreign direct investment. The program is expected to unlock an additional $3 billion in financing from other sources, including the World Bank and China. The impacts of the loan program will likely include raising taxes, reducing public expenditures and maintaining the public wage bill freeze. Conditions of the loan also include that the Mongolian government distances itself from the management of the Development Bank of Mongolia, a state lender that provides over a fifth of credit in the country. However, some people see it a move towards protecting big businesses, investors and the extractive industry, at the cost of and without the input from the Mongolian people.
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