## IMF Executive Board Completes Fifth Review under the Extended Arrangement for Mongolia and Approves US$ 36.22 Million Disbursement

_IMF News, October 31, 2018_

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## Bibliographic details
- Published: October 31, 2018

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### Review outcome and disbursement
- On October 31, 2018, the Executive Board completed the fifth review of Mongolia’s performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF).
- Completion of the review enables Mongolia to draw the equivalent of SDR 26.2088 million (about US$ 36.22 million).
- Total disbursements under the arrangement now amount to SDR 157.2454 million (about US$ 217.33 million).

### Program size, objectives, and background
- Mongolia’s three-year extended arrangement was approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$ 434.3 million1 at the time of approval of the arrangement.
- The government’s Economic Recovery Program, supported by the IMF, aims to:
  - stabilize the economy,
  - reduce the fiscal deficit and debt,
  - rebuild foreign exchange reserves,
  - introduce measures to mitigate the boom-bust cycle,
  - promote sustainable and inclusive growth.

### Performance against targets and recent developments
- Mongolia continues to perform well under the program, driven by strong policy implementation and a supportive external environment.
- The authorities met all end-September 2018 quantitative targets under the program, with significant over-performance on fiscal targets.
- Growth has accelerated further, leading to improvements in the fiscal position and debt dynamics.
- The fiscal accounts have posted a primary surplus, reflecting both a sharp increase in revenues and continued expenditure restraint.
- Past over-performance allowed the authorities to meet key reserve targets, despite a recent rise in balance of payments pressures.

### Financial sector and Asset Quality Review (AQR)
- In the financial sector, the focus remains the follow-up to the Asset Quality Review (AQR).
- "Select banks are in the process of booking the results of the AQR and subsequent on-site inspections. They are also now raising the needed capital to address identified shortfalls by the end-December 2018 deadline."
- "The Bank of Mongolia will remain focused on ensuring financial sector stability throughout the process."

### Vulnerabilities and recommended policy priorities
- Mongolia remains vulnerable to external and domestic shocks.
- Policy recommendations emphasized by Mr. Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director:
  - take advantage of the still favorable economic environment to further bolster fiscal and external buffers;
  - strengthen the banking sector;
  - improve the investment climate;
  - continue efforts to protect social spending;
  - strengthen tax administration;
  - improve public financial management.
- "A dedicated implementation of the authorities’ reform program is key to build resilience against shocks and ensure sustainable, inclusive growth."

*Source: Press Release No. 18/404, October 31, 2018, IMF Communications Department.*

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## Content in this bundle

- [Pr18404m (PDF)](/external/lang/mongolian/np/sec/pr/2018/pr18404m.pdf){rel="external" type="application/pdf"}

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## References

- [Mongolia and the IMF](http://www.imf.org/external/country/MNG/index.htm)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 17/193](https://www.imf.org/en/News/Articles/2017/05/24/17193-imf-executive-board-approves-financial-arrangement-for-mongolia)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/10/31/pr18404-imf-executive-board-completes-fifth-review-under-the-extended-arrangement-for-mongolia_