ADB LOAN AGREEMENT BACKED

Ulaanbaatar /MONTSAME/ Yesterday, the Cabinet discussed and backed loan agreements between the Government of Mongolia and the Asian Development Bank to jointly implement “Social welfare support program-2” and “Restoring Bank sector and strengthening financial stability program”. Then the Cabinet decided to submit the agreements to relevant parliamentary standing committees for their consent. “Social welfare support program-2” has goals to support realization of the Program to Revive Economy, to lower negative impacts of economic difficult conditions on vulnerable groups, to direct social welfare program for targeted groups and to recover budget deficit. The first program was implemented successfully in 2015-2016, however, Mongolia has to overcome the pressures of fall of economic growth, macroeconomic problems, accumulated debt, budget deficit and payment imbalance. In this regard, the Government works with the International Monetary Fund and Asian Development Bank and so on. ADB loan of USD150 million will be spent to finance 19 policy measures in two stages. The loan will be repaid in 15 years, with exemption from loan principal for the first three years and the loan interest will be equal to London Interbank' annual interest rate, plus a 0.6 per cent fee and 0.15 per cent charge for asset reserve guarantee. B.Ooluun