IMF Reaches Staff-Level Agreement on First Review of Mongolia’s Extended Fund Facility
An International Monetary Fund (IMF) staff team led by Mr. Koshy Mathai visited Ulaanbaatar to conduct discussions on the first review of the three-year Extended Fund Facility.
IMF Reaches Staff-Level Agreement on the First Review of Mongolia’s Extended Fund Facility. An International Monetary Fund (IMF) staff team led by Mr. Koshy Mathai visited Ulaanbaatar to conduct discussions on the first review of the three-year Extended Fund Facility (EFF) arrangement approved in May this year, in an amount equivalent to about US$434.3 million. At the conclusion of the visit, Mr. Mathai told that the local economy is rebounding, with GDP growth likely to reach 2 percent this year on the back of strong coal production and exports, high private investment, and a return of confidence following the approval of the $5.5 billion IMF-led package. Fiscal results have been better than expected, supported by strong revenues and tight expenditure control. About half of the revenue over performance will be saved, thus helping to reduce borrowing and control debt, while the remainder will be used to fund productive spending in line with the government action plan. Net international reserves have improved, reflecting strong export performance and capital inflows into the government securities market. The authorities have moved ahead with their ambitious structural reform agenda, which will help to sustain growth over the medium term. The strengthening of the banking system is underway: the Asset Quality Review will soon be launched, important legal reforms are being drafted, and improvements to the regulatory and supervisory framework are being implemented. The authorities and the team have reached staff-level agreement on the completion of the first review under the EFF arrangement, which is subject to review by the management and Executive Board of the IMF.
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