Mongolia unlocks further funds from IMF
Mongolia has secured an extra $36m from the IMF after successfully implementing reforms and complying with loan conditions.
Mongolia is currently undertaking IMF-backed reforms to stabilize the economy, reduce debt, build resilience to fiscal shocks and boost inclusive growth. Mongolia’s public debt is currently 85% of GDP but the IMF suggested earlier this year that strong economic growth would help the country build reserves and reduce debt. Growth was 6.1% in the first quarter of 2018. If this trend continues, the fund estimates that public debt could be reduced to 71% of GDP by 2020 and 55% by 2023. The three-year loan program, approved in May 2017, amounts to a total of $434.3m, which is part of a broader $5.5bn financing package also supported by Japan, Korea, China, the World Bank and the Asian Development Bank. Mongolia continues “to perform well under the program”, with strong policy implementation and structural reforms, the fund said in a statement. The government should continue to strengthen tax administration and improve public financial management to improve resilience, the IMF added.