Mongolia agrees to $5.5 billion economic bailout plan with IMF, others

by Dramelin 9:30 PM 0 comments

Mongolia has agreed with the International Monetary Fund and other partners for a $5.5 billion economic stabilization package, according to a statement from the IMF on Sunday. Mongolian economy grew at 1 percent last year, its slowest pace in seven years, and may slip into recession when austerity measures imposed on the country for a debt bailout are rolled out. The bailout plan is pending formal approvals from the IMF board in March, according to the statement. People`s Bank of China will expand a swap line worth 15 billion yuan ($2.19 billion), while the IMF will offer three-year loans worth about $440 million, the latter added. Mongolia has pledged to implement fiscal reforms for greater budget discipline, but its social spending will be protected.