IMF approves $79.1mn loan for Mongolia, says gov't meets targets

SHANGHAI: The International Monetary Fund has approved a loan of about US$79.1 million for Mongolia following two rounds of reviews of the country's performance.

In a statement, the IMF said the completion of the first and second reviews of Mongolia's performance enables the country to draw the equivalent of 55.912 million in the IMF's Special Drawing Rights (SDR), equivalent to about US$79.1 million.

That would bring total disbursements to SDR83.868 million, or about $118.6 million, as part of a three-year extended arrangement under the IMF's Extended Fund Facility, the statement said.

The IMF approved the extended arrangement in May for about US$425 million.

Mongolia had met "all quantitative targets" under the arrangement thanks in part to "strong policy implementation and a supportive external environment," as well as notable progress in structural reforms, the statement said.

Mongolia's economy is expected to grow by 3.3 percent in 2017, "considerably better than forecasted at the time of programme approval," the statement said.

While praising the country's progress on structural, fiscal and social reforms, the IMF said that Mongolia continues to face economic risks.

"With debt still high and the economy still exposed to global commodity developments, it is critical to maintain strong commitment to the programme," Mitsuhiro Furasawa, IMF's acting chair and deputy managing director said in the statement.

"Sustained implementation of the reform agenda, will help cement solid growth, improve confidence, strengthen fiscal revenues and foreign reserves, and mobilise donor support."