IMF and Mongolia agree upon a 6th loan facility

The IMF agrees with Mongolia on a USD 434 million three year Extended Fund Facility (EFF), which is part of the larger USD 5.5 billion bailout package. This loan substantially increases Mongolian external debt [1], now estimated at USD 26 billion and more than twice its GDP of USD 11.2 billion. [2] As a condition for the loan, the government is required to implement budget reforms that include austerity measures, such as a wage freeze and personal income tax increase.[3] Government debt has ballooned from 30% of GDP in 2007 to over 90% in 2017.[4]

[1] retrieved September 2018
[2] World Bank, International Debt Statistics 2017, pg. 108 at, page 108 retrieved 4 December 2017
[3] Bloomberg, Mongolia clears hurdles needed for $5.5 billion IMF bailout, 201 April 2017, at retrieved 8 Augusut 2017
[4] Development Finance Assessment for Mongolia Diversifying finance for sustainable development (2018), pg.35 retrieved 22 November 2018