IMF staff team leader for Mongolia speaks about EFF program implementation

The American Chamber of Commerce in Mongolia

2018-01-08 09:03 GMT+8

Mongolian newspaper Today spoke with the International Monetary Fund's staff team leader for Mongolia, Geoff Gottlieb, about the team's October 2017 visit to Mongolia and the first and second reviews of the implementation of the extended fund facility (EFF) program.

The IMF’s Executive Board approved a 79.1 million USD disbursement to Mongolia last month. Gottlieb pointed out that two main achievements have been seen in Mongolia since the implementation of the EFF.

The first notable achievement is Mongolia’s prompt action to protect the economy to qualify for program enrollment. The second notable achievement is Mongolia's fulfillment of the program's macro economy requirements, as well as the growth seen by local industries in 2017. He stated that applying a generic income tax to all working people in Mongolia (10 percent) is detrimental for Mongolia, pointing out that paying income tax based on an individual's actual income is fair and considered to be the international standard. Gottlieb spoke about Mongolia's foreign debt, saying that, “Mongolia has the potential to keep its foreign debt stable by carrying out clear budget policy, ensuring financial regulations, and consistently implementing mining mega projects.”

He also mentioned that policy regulation is vital to limiting economic risk, such as those that would follow a decreased demand for the raw materials that make up the majority of Mongolia's exports. Gottlieb said that his IMF team is planning to assist in establishing a council dedicated to maintaining budget sustainability and drafting sound annual budgets.

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