Mongolia

    Second Economic Management Support Operation (EMSO) Development Policy Financing

                                            Chair Summary*

                                               July 30, 2019

         The Executive Directors approved a loan in the amount of US$20 million from the International
Bank for Reconstruction and Development (IBRD) and a credit in the amount of SDR 58.1 million (US$80
million equivalent) from the International Development Association (IDA) to finance the second Economic
Management Support Operation Development Policy Financing (DPF) on the terms and conditions set out
in the President’s Memorandum.

        Directors expressed broad support for the operation recognizing the need for continued support of
the Government’s Economic Recovery Program. They commended the Government for strengthening
social protection systems and advancing long term structural reforms to stimulate the country’s
competitiveness. They underscored the need for the Government to recapitalize the banks in a transparent
and lawful manner, maintain fiscal responsibility, advance diversification, and further accelerate structural
reforms.

        Directors expressed some concern on the way collaboration between the Bank and the Fund was
handled in the context of this operation but were pleased with the convergence of views among the
Management of both institutions. They stressed the importance of leveraging the new engagement of EMSO
3 to support banking sector issues as an opportunity to further strengthen the collaboration with the IMF.
They also encouraged a continuous policy dialogue with other development partners.




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*This summary is not an approved record.