“- Since the Government and Bank of Mongolia reached an agreement with IMF to implement EFF, credit rate of Mongolia has improved and investors’ trusts have been raised. In other words, economy of Mongolia has transferred from fall to growth and green light has been lit in the economy. The first funding of USD38.6 million will be disbursed very soon” said the Finance Minister. Later today, the Bank Mongolia reported that the funding of USD 38.6 million has been deposited into the central bank from the IMF.

If private sector financing is added, then the total amount of EFF will reach USD6 billion. The funding will be considered as the biggest in IMF history of operation in terms of GDP relations, said Mr Neil Saker. “The program will aim to stop high economic growth and drastic fall, ensuring stable economic growth of 8 per cent. Mongolia has potential and resource to ensure such growth”, he noted.

The 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. 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. 
B.Ooluun