Mongolia agrees terms for $5.5bn IMF-backed loan

Annual growth slowed to one per cent last year, the lowest rate experienced for seven years. Economic pressures have left the government based in Ulaanbaatar with budget shortfalls and looming debt repayments.Read more: Is the Greek debt crisis about to heat up again?As part of the package, the People’s Bank of China is expanding a swap line worth 15 billion yuan (£1.76 bn) and the IMF is providing three year loans worth $440m. China borders Mongolia and is the largest export market for the country’s copper and coal exports.”Fiscal consolidation is a key priority, as loose fiscal policy in the past was a major driver for Mongolia’s current economic difficulties and high debt,” said Koshy Mathai, IMF’s team leader for the package.The Asian Development Bank, the World Bank, and banks in Japan and South Korea, will also be providing funds for the bailout. It is hoped that the new deal will help the Development Bank of Mongolia repay a $580m bond that is due next month. Sunday 19 February 2017 2:51 pm The IMF and its partners have come to an agreement to provide Mongolia with an economic stabilisation package worth $5.5bn (£4.43bn).Rapid growth in Mongolia’s commodities sector had resulted in a fast pace of economic growth, reaching double digit figures between 2011-2013. A sharp decline in commodity prices, plus a fall in foreign direct investment, and a widening deficit, has hit the Mongolian economy in more recent years. whatsapp Share Ashley Coates Mongolia agrees terms for $5.5bn IMF-backed loan by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeDefinition.org25 Size Comparisons That Change The PerspectiveDefinition.orgHealthline: Medical information and health advice15 Evening Habits that are Definitely Bad for Night’s SleepHealthline: Medical information and health adviceFoundation Repair | Search AdsFoundation Repair Cost May Be More Affordable Than Ever In 2021, Check OptionsFoundation Repair | Search Adsmaternityweek.comShe’s Been Called The World’s Most Beautiful Nursematernityweek.comMarvelousaCanal Drained For First Time And They Find ThisMarvelousaalldelishThe 14 Healthiest Vegetables on EarthalldelishReadBakery Here’s Why You Should Put a Needle into a BananaReadBakery Fantastic ReadHow To Be Beautiful And Attractive?Fantastic ReadHistory 10Workers At The Washington Monument Have Dislodged An Important Concealed RelicHistory 10 whatsapp There are fears that the country could slip into recession when the austerity measures brought about as part of the stabilisation package start to take effect. According to Mongolian finance minister, Battogtokh Choijilsuren, Mongolia will continue to fund measures such as a universal allowance for the children most in need and a subsidy for some drug costs.Read more: Glencore expects copper production to fall but other commodities to riseNadmid Bayartsaikhan, president at Mongolia’s central bank said the country would no longer be supporting “fiscal policy programmes”, such as a subsidy for certain mortgages.“Monetary policy will remain appropriately tight, given the objective of price stability,” the IMF’s Koshy Mathai said.“Over time, however, as the economy normalises, it may be appropriate to cut the policy rate if external and inflation indicators permit. The exchange rate will continue to move flexibly, with intervention limited to smoothing excessive volatility and preventing disorderly market conditions.””I think we’re looking at a pretty good outlook for Mongolia.” More From Our Partners I blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org

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