Social protection project to be implemented with ADB in pandemic response

2020-06-19 16:27:43

Ulaanbaatar /MONTSAME/ At its irregular meeting on June 19, the Cabinet decided to implement a social protection project with the Asian Development Bank (ADB) in pandemic response and the Prime Minister issued an order authorizing the Minister of Finance to sign a loan agreement for the project.

A need has arisen to handle the budget deficit with policy support in order to reduce the adverse impacts of Covid-19 on the country’s economy, budget, and vulnerable groups in the society. Therefore, the Cabinet developed the above-mentioned project with ADB to support the second package of measures to stimulate the economy and contribute to the incomes of citizens.

The USD 26.4 million soft loan has a repayment term of 40 years, interest rate of 1 percent and a moratorium period of 10 years. The project will be implemented under the General Funding Program for Rapid Response between Mongolia and ADB, approved by the Parliament on April 23.