ULAN BATOR, June 30 (Xinhua) -- Mongolian Prime Minister Jargaltulga Erdenebat said Friday that Mongolia's economic recession has been completely halted and the foundation for the sustainable development of the domestic economy laid.
This was achieved after Mongolia began implementing the International Monetary Fund (IMF)'s Extended Fund Facility program, Erdenebat told the plenary session of the State Great Khural, the country's parliament.
"We are able to halt the devaluation of the national currency and protect the purchasing power of citizens for consumer goods by increasing foreign exchange reserves, improving fiscal discipline, pursuing macroeconomic stabilization policies and restoring investor confidence," he said.
As a result of the support of international organizations and due to the implementation of the correct monetary and fiscal policy, Mongolia plans to reduce the state debt below 60 percent of gross domestic product (GDP) by 2021 and even lower in the future, he said.
The growth of Mongolia's economy in 2012 was 17 percent, but was followed by a fall towards the third quarter of 2016 when it saw a 1.6 percent growth.
Yet since then, Mongolia's economy has gradually recovered thanks to the adoption of timely operational measures. Mongolia's real economic growth already reached 4.2 percent in the first quarter of 2017.
The Mongolian prime minister expressed confidence that Mongolia's economy will continue to develop vigorously, and Mongolia will become a country that attracts the attention of businessmen and investors.
The Central Bank of Mongolia received an initial fund of 38.6 million U.S. dollars from the IMF under an enhanced financing program on May 25, 2017.
After the implementation of the above-mentioned program, Mongolia will receive a soft loan of 434.3 million dollars from the IMF to help stabilize the country's economy and support its economic reforms.
In May, the IMF approved a three-year, 434 million-dollar loan for Mongolia as part of a wider 5.5 billion-dollar IMF-led aid package which is also supported by Japan, South Korea, China, the Asian Development Bank and the World Bank.
The agreement was reached after the IMF admitted that Mongolia had met some of its demands, including raising taxes and cutting spending.
