Asia

IMF says it has agreed terms for $5 bn loan to Mongolia

The International Monetary Fund said Sunday that it and other partners have agreed on terms for a more than $5 billion loan to the Mongolian government to help get the north Asian country's economy back on track.

The deal is subject to approval by the IMF's executive board, which is expected to consider Mongolia's request in March.

According to the terms agreed by the Mongolian government and IMF envoys, the IMF would provide $440 million over three years. The Asian Development Bank, World Bank, Japan and South Korea are expected to provide up to $3 billion, and the People's Bank of China is expected to extend its $2 billion swap line with the Bank of Mongolia for at least another three years, the IMF statement said.

Mongolia's debt-laden economy has been hit hard by a sharp decline in commodity prices and a collapse in foreign direct investment.

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This story has been corrected to show that IMF's portion of the loan would be $440 million.