IMF continues discussions on the sixth review of Mongolia’s EFF
EconomyUlaanbaatar/MONTSAME/ An
International Monetary Fund (IMF) staff team led by Mr. Geoff Gottlieb visited
Ulaanbaatar during January 28–30, 2019 to continue discussions on the sixth
review of the three-year Extended Fund Facility (EFF) arrangement approved on
May 24, 2017, in an amount equivalent to SDR314.5054 million, or about USD434.3
million.
At the conclusion of the
visit, Mr. Gottlieb made the following statement:
“The economy continues its
recovery, with growth exceeding 6 percent in 2018, amid supportive external
conditions and sharply rising domestic demand. Both the strong growth and the
authorities’ commitment to discipline on public spending have resulted in large
over-performance on fiscal targets under the program.
“To tackle signs of
overheating pressures that are a headwind on further international reserve
accumulation, the Bank of Mongolia has raised the policy interest rate and
introduced macro-prudential measures to rein in excessive credit growth. The
authorities stand ready to tighten further if necessary.
“The rehabilitation of the
banking system is a core part of the program. The IMF staff team continues to
work with the Bank of Mongolia on the follow-up to the Asset Quality Review
that was completed in 2017. The authorities have committed to taking decisive
actions regarding the recapitalization or resolution of under-capitalized banks
before the next IMF Executive Board meeting on the sixth review. Over the
coming weeks, discussions with the authorities will continue from IMF
headquarters.
“The team thanks the
authorities for their cooperation, constructive dialogue, and hospitality
during its stay in Mongolia.”
Source: IMF Communications Department