ADB provides fund in emergency support to Mongolia
The Asian Development Bank approved USD100 million in emergency support to the Government of Mongolia
The Asian Development Bank approved USD100 million in emergency support to the Government of Mongolia to help it weather the impacts of severe economic shocks. The program will support other key government measures including 50% reimbursements of social security premium contributions for lower-paid employees for the rest of 2022 and 8.5% salary increases for lowest-earning public service employees (three-quarters of whom are women). It will also provide about 16,000 new kindergarten spaces for young children in poor areas. The Russian invasion of Ukraine and continuing border restrictions with the People’s Republic of China (PRC) due to COVID-19 have caused substantial fiscal stress in Mongolia. In response, the government has prepared a countercyclical development expenditure program (CDEP) to help poor and vulnerable groups, ease inflationary pressure, and support macroeconomic stabilization. External shocks disproportionally affect poor and vulnerable groups, including women and girls. Women are highly concentrated in lower wage sectors such as services, food production, and wholesale and retail trade, which have been most adversely affected by the pandemic because of mobility restrictions. This program will reach 1.2 million children in 64% of the country’s households through direct cash transfers.