IMF Executive Board Approves Financial Arrangement for Mongolia
Mongolia's economic reform program aims to stabilize the economy, restore confidence, and pave the way to economic recovery.
IMF Executive Board Approves Financial Arrangement for Mongolia. Mongolia's economic reform program aims to stabilize the economy, restore confidence, and pave the way to economic recovery. The program also lays the foundation for sustainable, inclusive growth in the future, and end the boom-bust cycles of the past. The Executive Board of the International Monetary Fund (IMF) approved a three-year extended arrangement under Extended Fund Facility (EFF) for Mongolia in a total amount of about US$434.3 million to support the country’s economic reform program. Other financing partners, including the Asian Development Bank, the World Bank, Japan, and Korea, have also committed to provide budgetary and project support, and the People’s Bank of China has agreed to extend its swap line with the Bank of Mongolia totaling to about $5.5 billion. The Board’s approval of the arrangement enables the immediate disbursement of an amount equivalent to about $38.6 million. A critical pillar of the program is fiscal consolidation, to reduce the pressure on domestic financial markets, stabilize the external position, and restore debt sustainability. The program includes important safeguards to protect the most vulnerable during this period of adjustment as well as institutional reforms to make sure the fiscal adjustment is durable. Another pillar of the program is a comprehensive effort to rehabilitate the banking system and strengthen the Bank of Mongolia. A broad set of structural reforms is designed to support private-sector led growth.
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