ADB begins new Mongolia partnership with USD 250 million to avert crisis in social services and bank
The Asian Development Bank Board of Directors has endorsed a new Country Partnership Strategy for Mongolia, which envisages total assistance of USD1.2 billion over the period between 2017 and 2020.
ADB begins new Mongolia partnership with USD 250 million to avert crisis in social services and banking sector. The Asian Development Bank (ADB) Board of Directors has endorsed a new Country Partnership Strategy (CPS) for Mongolia, which envisages total assistance of USD1.2 billion over the period between 2017 and 2020, and also approved two policy-based loans (PBLs) totaling USD250 million to start implementation of the new CPS. The loans will help maintain funding for social welfare programs for the poor and vulnerable people and stabilize and restructure the banking industry during the implementation of an extended fund facility of the International Monetary Fund. To mitigate the adverse impacts of the economic slowdown and fiscal consolidation, a policy-based loan of USD150 million will ensure fiscal expenditure is maintained on social welfare programs. Besides strengthening fiscal management, the policy-based-loan will help Mongolia consolidate the country’s 71 existing social welfare programs and achieve better targeting to ensure that the poor and vulnerable people are supported. The second policy-based-loan of USD100 million will support the government’s efforts to restructure and recapitalize the banking industry, reduce nonperforming loans, and enhance regulation and supervision. Under this, government will implement a road map for banking industry rehabilitation and ensure effective management and sale of distressed assets.
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