IMF awards $39 million funding to Mongolia

The International Monetary Fund has approved a $39 million disbursement to Mongolia, it was announced Wednesday.

In granting the money to Mongolia, IMF officials acknowledged progress made by Mongolia in strengthening the economy following harm done by the global economic crisis.

"The Mongolian authorities' strong policy implementation, supported by an exceptional access standby arrangement with the fund, is effectively stabilizing the economy in the face of the global crisis," said Takatoshi Kato, deputy managing director at the IMF and acting board chairman.

Further, the IMF said in a statement that it urged the Mongolian government to continue focusing on reforms.

Kato cited Mongolia’s rising reserve levels and its easing of monetary restrictions as inflation lessens as reasons for optimism.

IMF officials are hoping to see Mongolia further restrain fiscal spending to reach the deficit target of 6% of gross domestic product this year.

Lastly, Mongolia is urged to continue strengthening the banking system and avoid borrowing foreign funds as a means of assisting in the recovery.

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