ADB works with Mongolia to enhance social welfare, banking sector and financial stability
The Government decided to submit a bill for ratification of loan agreements of "Social Welfare Support Program-2" and "Banking Sector Rehabilitation and Financial Stability Strengthening Program".
ADB works with Mongolia to enhance social welfare, banking sector and financial stability. The Government decided to submit a bill for ratification of loan agreements of "Social Welfare Support Program-2" and "Banking Sector Rehabilitation and Financial Stability Strengthening Program", which will be implemented jointly by the Government of Mongolia and the Asian Development Bank (ADB). "Social Welfare Support Program-2" aims to support the implementation of the "Economic Recovery Program", to target social welfare to the targeted groups in economically difficult time and to recover state budget deficit. 18 policy measures planned to be taken in two phases, including lowering budget deficit, making social welfare program more efficient and upgrading database of targeted groups and 11 measures of them have completed. USD 150 million ADB loan will have a 15-year term, including a grace period of three years and an annual interest rate determined in accordance with ADB's London interbank offered rate-based lending facility, plus 0.5 per cent fee and a commitment charge of 0.15 per cent. The "Banking Sector Rehabilitation and Financial Stability Strengthening Program" aims to ensure financial stability, make changes in its infrastructure, increase competitiveness of banks, resolve non-performing loans and improve control on it and to strengthen governance. The parties agreed to implement the program with finance of USD100 million ADB loan.
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