The funding is being granted within the Extended Fund Facility (EFF) Program running by the Government of Mongolia in partnership with the International Monetary Fund (IMF). The first funding of the program or USD 120 million was granted in December 2017. While, the World Bank’s International Development Association and the International Bank for Reconstruction and Development are jointly providing USD 100 million for the second phase.

The funding will be spent on reducing expense of public investment projects, increasing their efficiencies, increasing housing access in a way of improving apartment mortgage program, strengthening social protection system, upgrading business environment and ensuring implementation of law on Animal Health.

Minister of Finance Ch.Khurelbaatar said that EFF program co-implementing with the International Monetary Fund is giving its yields. "Mongolia’s economic growth was at 7.2 percent in 2018 and 7.3 percent as of the second quarter of this year. Mongolia’s credit rating has been upgrading. The World Bank Group Board of Directors convened two months ago, where they resolved to grant funding of USD 100 million to Mongolia. The Parliament ratified draft law on issuance of funding yesterday. This financing will target to supporting budget, not for implementing projects and programs."

“Today, we signed an important financing agreement that would back a large-scale economic program running by the Mongolian Government. This is one of the largest programs, in which the Government of Mongolia and international partner organizations reached to an agreement. It is the second biggest financing to be allocated to grow Mongolia’s economy and improve debt sustainability and competitiveness. We will be rendering assistance on improving Mongolia’s economy in the future,” WB Country Manager for Mongolia Andrei Mikhnev said.