Mongolia Annuls Forex Regulation to Pave Way for Imf Bailout

 
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AKIPRESS.COM - Mongolia's legislature removed the main obstacle to an International Monetary Fund-led bailout for its crisis-ridden economy by annulling a controversial banking requirement for foreign-invested projects, state news agency Montsame said Friday.

The IMF board had been expected to approve a $5.5 billion rescue package for Mongolia at a meeting on April 28, but delayed a decision amid concerns about a clause that required foreign projects such as Rio Tinto's Oyu Tolgoi copper mine to channel sales revenues through local banks in order to boost Mongolia's foreign exchange reserves.Heavy foreign debt, a collapse in its tugrik currency and a slowdown in growth in its biggest trading partner, China, have combined to push the economy into crisis.

A member of the budget standing committee, Ch. Khurelbaatar, said there was no time to waste in receiving the IMF program, according to a summary of a Thursday...

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