International Monetary Fund (IMF) representatives arrived in Ulaanbaatar on January 30, with another team arriving on January 31, and another team set to arrive on February 5, according to Minister of Finance B.Choijilsuren.
Minister B.Choijilsuren told journalists that the government’s negotiations with the IMF are resuming, and that a final decision on whether or not Mongolia will enroll in a standby agenda will be clear by February 15.
An IMF team visited Mongolia from October 24 to November 4 to become familiar with the government’s monetary policy and the current economic situation.
The Ministry of Finance and Cabinet will be speaking to the IMF about which standby plan to enroll in. The IMF offers two types of programs within its standby agenda, the standby credit facility and the standby arrangement. The standby credit facility is offered to underdeveloped countries in economic crisis, and the standby arrangement is an IMF loan offered to developing countries.
The standby credit facility provides financial assistance to low-income countries with short-term balance of payments needs. The usual duration of the loan is 12 to 24 months. The standby credit facility is chosen if it is thought that the macroeconomic issues of a country can be resolved within two years. The IMF requires that the spending be concentrated on fostering development and decreasing poverty.
The IMF standby arrangement is financial aid provided to a member state in need of financial assistance, normally arising from a financial crisis. In return for aid, the economic program stipulates needed reforms in the recipient country aimed at bringing it back on a path of financial stability and economic sustainability.