Press releases
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The IMF approved the second annual arrangement under the Enhanced Structural Adjustment Facility (ESAF) to support Mongolia's economic and financial program. The three-year ESAF arrangement was approved on July 30, 1997, in an amount of SDR 33.4 million (about $45 million). (See Press Release No. 97/36, IMF Survey, August 18, 1997, page 268.) The decision provides Mongolia with SDR 14.8 million (about $20 million) in support of the authorities' adjustment program, with a disbursement of SDR 5.9 million (about $8 million) available immediately. Medium-term strategy and 1999/2000 program The authorities' strategy is to create a stable macroeconomic environment and implement market reforms conducive to private-sector-led growth. The 1999-2000 program aims at achieving real GDP growth of 3-4 percent a year, a further reduction in inflation to low single digits, and a rebuilding of gross official reserves to the equivalent of 14 weeks of imports in 2000. To meet these objectives, the government intends to implement a restrained fiscal policy to reduce the overall deficit significantly over the medium term. Monetary policy will remain tight to lock in the recent strong gains in inflation performance and to strengthen the external payment position. Structural reforms
[GRAPHICS ARE NOT INCLUDED]
Structural reforms will focus on restoring a sound banking system, accelerating the already successful privatization program, and enhancing the transparency and efficiency of government operations. Addressing social needs
The government has a firm commitment to strengthen the social safety net and improve the provision of social services to alleviate the costs of transition to a market economy. Emphasis is being placed on market-oriented measures, including expanded training programs and small business creation.
Mongolia joined the IMF on February 14,1991, andits current quota is SDR 51.1 million (about $69 million). Its outstanding use of IMF financing currently totals SDR 34.3 million (about $46 million).Page 220
The IMF approved a three-year credit for Peru equivalent to SDR 383 million (about $512 million) under the Extended Fund Facility (EFF) to support the government's economic reform program for 1999-2001. The government intends to treat the EFF credit as precautionary and will only draw under it if adverse external circumstances make it necessary.
In commenting on the Executive Board's discussion of the request by Peru, IMF First Deputy Managing Director Stanley Fischer made the following statement:
"Directors welcomed the authorities'...
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