Ulaanbaatar
IMF to give loan with floating interest rate of 2 per cent
EconomyUlaanbaatar /MONTSAME/ Soft loan to be given to Mongolia from the International Monetary Fund will have less than 2 per cent interest and the interest will be calculated with a floating interest rate. The Government of Mongolia and Bank of Mongolia have reached a staff-level agreement with the International Monetary Fund on three-year Extended Fund Facility (EFF) program for USD 440 million and the parties called a press conference on February 19.
IMF staff-team leader Koshy Mathai provided the above mentioned fact when answering journalists’ questions. Loan term will be 10 years as loan repayment term of the Extended Fund Facility program is much longer than ‘Standby’ program. USD440 million will be allotted over three years as well as repayment will be made in scheduled time, not at once.
“The authorities intend directly to boost economic activity and prospects by attracting new investment to major mines, and by implementing an array of structural reforms to promote economic diversification and improve competitiveness, especially in the agriculture and tourism fields.
The broad range of reforms envisaged under the program have been developed in close collaboration with the World Bank and ADB. The authorities’ adjustment and structural reform program, supported by the large package of external financing, is expected to stabilize the economy and lay the basis for sustainable, inclusive and long-term growth” he stated.
