Press Release No. 09/423

Press Release: IMF Statement on Banking Sector Developments in Mongolia

November 20, 2009

Mr. Takatoshi Kato, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement on Mongolia today:

“The Mongolian economy was hit hard by the global economic crisis earlier this year. The authorities’ strong policy implementation, however, has helped to quickly stabilize market conditions. Nonetheless, the repercussions from the crisis have taken their toll on the banking system.

“I welcome and fully support the Bank of Mongolia’s decision to appoint a receiver at Zoos Bank. This unfortunate but necessary action underscores the authorities’ commitment to strengthening the banking system and ensuring financial market stability. The IMF remains committed to continued support of Mongolia in the context of the exceptional-access Stand-By Arrangement approved in April of this year (see Press Release No. 09/64).”