IMF approves loan to Mongolia to finance reforms

BEIJING – The International Monetary Fund has approved a $434 million loan to Mongolia to finance reforms meant to revive economic growth and reduce reliance on mineral exports.

The fund said Thursday other financing partners including the Asian Development Bank, the World Bank, Japan and South Korea also have promised to provide up a total of up to $3 billion in additional support.

Mongolia has been hit hard by a fall in commodity prices and foreign investment. Its national debt stands at the equivalent of twice annual economic output.

The IMF said under the loan program, authorities will undertake a possible restructuring of Mongolia’s banking industry. It said that would be followed by structural reforms to promote economic diversification to reduce reliance on mining.