IMF Executive Board Completes Fourth Review under the Extended Arrangement for Mongolia
The Executive Board of the IMF completed the fourth review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility.
One year into the program, Mongolia’s economic performance continues to be strong with over-performance on key fiscal and reserves targets. Structural reforms to strengthen fiscal policy and the banking sector are moving ahead, but there have been some delays in implementation. With high public debt and the economy exposed to global commodity developments, authorities’ strong commitment to the program remains crucial. The Executive Board of the International Monetary Fund (IMF) completed the fourth review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF). Completion of the review enables Mongolia to draw the equivalent of about US$ 36.91 million, bringing total disbursements under the arrangement to about US$ 184.55 million. Mongolia’s performance under the program remains strong. The combination of strong policy implementation and a supportive external environment has helped the authorities over-perform on all end-March 2018 quantitative targets under the program. Progress has also been made on structural reforms, albeit with some delays. Mongolia’s three-year extended arrangement was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$ 434.3 million1 at the time of approval of the arrangement. The government’s Economic Recovery Program, supported by the IMF, aims to stabilize the economy, reduce the fiscal deficit and debt, rebuild foreign exchange reserves, introduce measures to mitigate the boom-bust cycle and promote sustainable and inclusive growth.
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