Source: IMF Press release                Date: 20 October, 2010

A joint statement by Minister of Finance S. Bayartsogt,  Central Bank Governor L. Purevdorj, and the IMF Staff Mission chief for Mongolia Steven Barnett, issued on the occasion of the successful completion of Mongolia's Stand-by Arrangement (SBA) with the IMF, notes that the Government’s “determined policy implementation within the framework of the IMF-supported SBA has led to a remarkable economic turnaround with growth expected to exceed 7 percent this year”, and to macroeconomic performance improving significantly.

Since joining the IMF in 1991, Mongolia has had several IMF-supported programs to facilitate structural reforms that helped the transition to a market economy, to promote economic stability, and to reduce poverty. These included an SBA (1991-1992), Enhanced Structural Adjustment Facility I (ESAF) (1993-1996), ESAF II (1997-2001), and Poverty Reduction and Growth Facility (2001-2005). “These programs, however, all eventually went off-track; the recently concluded SBA marks the first time that Mongolia has successfully completed an IMF-supported program,” the statement said.

It concludes, "The Mongolian economy is poised to enter a period of rapid economic growth with the development of its vast mineral resources. Managing the pending boom, however, will require continued prudent economic management. This includes consolidating the recent gains in fiscal policy by strictly adhering to the Fiscal Stability Law recently adopted, continuing to gear monetary policy towards fighting inflation supported by the flexible exchange rate regime, pressing ahead with reforms to strengthen the banking system, and proceeding with social welfare reform. These policies will help ensure that Mongolia’s mineral wealth leads to strong and sustainable growth that spreads prosperity to all of Mongolia’s citizens."