Mongolia Asks IMF For Rescue Loan

Mongolia has requested a rescue loan from the International Monetary Fund as it battles to plug the gap in its public finances while keeping its giant neighbour, China, at arm’s length, the Financial Times reported. The central Asian nation submitted a formal request for financial assistance from the fund to support its economy and address balance of payments pressures, the IMF said on Friday. A team from the IMF will visit Ulan Bator, Mongolia’s capital, for discussions with the government. Mongolia has struggled to control its budget deficit, make its international payments and curb a severe depreciation in its currency following the global commodity price rout. The request for assistance was widely expected and will probably trigger offers of support from other international donors, including the Asian Development Bank and Japan. It comes after a week of conference calls in which Mongolia’s ministry of finance sought to assure international bond investors that belt-tightening measures already under way would be sufficient to improve the country’s medium-term outlook. Read more. (Subscription required.)