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Mongolia : IMF approves $5.5B aid-package to Mongolia
Publish Date : 05-Jun-2017
The International Monetary Fund (IMF) has sanctioned a much-needed aid package of $5.5 billion for Mongolia.
However, experts have asked whether the government will be able to put the economy back on track by implementing painful structural reforms.
The IMF board sanctioned a 3-year loan of $434.3 million to Mongolia.
The Asian Development Bank, the World Bank, Japan and South Korea also pledged support, while the People's Bank of China said it will extend a swap line with the Bank of Mongolia. About $38.6 million will be immediately distributed.
At a joint news conference with IMF representatives, Minister of Finance Choijilsuren Battogtokh, said parliament would not raise government payrolls and would seek to raise more taxes, with the aim of reining in spending and filling state coffers.
The minister added that the IMF loan would be used to repay foreign debt and open the door to economic development.
The IMF stated, "The authorities' program aims to stabilize the economy, restore confidence, and pave the way to economic recovery. 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."
