IMF Board of Directors approves 30.55 million USD financing installment for Mongolia
On March 29, International Monetary Fund Resident Representative for Mongolia Neil Saker reported that the Board of Directors of the IMF completed their third review of Mongolia’s extended fund facility (EFF) program and approved the provision of 30.55 million USD in financing. Since Mongolia’s enrollment into the program, the Government of Mongolia has received a total of 152.79 million USD in loan financing. Within a year of implementing the EFF program, Mongolia’s GDP grew by 5.1 percent, foreign currency reserves doubled, the Mongolian foreign currency exchange rate stabilized, and the state's budget deficit was reduced by over 10 percent. Saker underlined that the Board of Directors is pleased with improvements to Mongolia's economic indicators, despite the fact that three main IMF recommendations for structural and budget reforms were cancelled. Saker said that the state's authorities should be careful in making policy decisions. The government's main focus should be directed at increasing budget income, conducting expenses efficiently, reducing loan interest rates, and keeping the inflation rate low. Increasing access to bank loans for SMEs and the agricultural sector will be beneficial to the economy. It was noted that the Board of Directors emphasized that consistent implementation of the EFF program will be important due to Mongolia's high national debt and over-dependence on minerals prices.
Keywords: International Monetary Fund, GoM, EFF
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