H.E. Mr. U. Khurelsukh, the Prime Minister of Mongolia, met Mrs. Christine Lagarde, the Managing Director of the International Monetary Fund, on September 20, 2018, and exchanged views on the “Extended Fund Facility” program results and further measures to be taken.
Prime Minister U. Khurelsukh expressed appreciation to the Managing Director and staff of the IMF for understanding Mongolia’s situation and supporting its Government’s decision.
Managing Director highlighted the successful implementation of the EFF since its adoption. She expressed delight with the steady implementation of the policy, meeting of the statistical objectives, budgetary stability, decreasing of debt, substantially improving credit rating, which results in the successful implementation of the EFF.
As a result of the EFF, the growth of the Mongolian economy, which was 1.2% in 2016, is planned to reach 6.3% in the first half of 2018, and further approx. 8% in 2019. Also, due to the budgetary discipline and consolidation, the budget deficit was improved and was positive for the first time in 2018. In 2019, the budget deficit is to be brought down to 1% of the GDP.
Director C. Lagarde also underlined that the measures such as keeping inflation at the desired level, increasing of foreign exchange reserves, strengthening of the banking sector and improving the regulatory framework already started giving early results.
As Mongolia is still sensitive to external and internal shocks, IMF Managing Director urged to pay attention to the improving of the investment climate, reducing the budget deficit, continue to increase the foreign exchange reserves, and design measures to overcome potential shocks.
Prime Minister expressed the commitment to pay attention in further successfully implementing the EFF between the Government of Mongolia and the IMF, foster the economy and increase inclusive growth.