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 US$434.3
million
[1]
(see
Press Release No. 17/193
).
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.”
[1]
The dollar amount is calculated based on the SDR-dollar rate of May
24, 2017, equivalent to $425mn at SDR-dollar rate of 1.35274 as of
February 27, 2017.
