East Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 2,576.91
% of GDP (2019): 19.13%
% of Regional Total Package: 0.09%
Package Per Capita in USD: 799.00
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline MNT574,000,000,000 USD208,233,659
01A - Short-term lending info_outline MNT250,000,000,000 USD90,694,102

No amount/estimate: 14 September 2020, The Bank of Mongolia announced that it will be introducing a long-term repo financing instrument to alleviate the current economic downturn and support economic recovery of the country. On 18 December 2020, the BOM announced that it will issue up to MNT250 billion under the long-term repo financing to support small and medium enterprises (SMEs) and non-mining exports in the first quarter of 2021 [update].

01B - Support policies for short-term lending info_outline MNT324,000,000,000 USD117,539,556

(i) 11 March 2020, The Bank of Mongolia (BOM) reduced the Mongolian Tugrik (MNT) reserve requirement of banks by 200 basis points (bps) to 8.5%. The lower reserve requirement released MNT324 billion of additional liquidity in the banking system. 23 November 2020, The revised reserve requirement on banks’ domestic currency liabilities is 6%; (ii) No amount/estimate: 26 June 2020, BOM announced that it will reduce remuneration on MNT reserve requirements issued to banks by the amount corresponding to the ratio of foreign currency-denominated (FX) deposits with relatively higher rates and FX current accounts charging any rate to total FX deposits and current accounts.

01C - Forex operations info_outline
02 - Credit creation info_outline MNT347,504,234,118 USD126,066,338
02A - Financial sector lending/funding info_outline MNT240,000,000,000 USD87,066,338

20 May 2020, The BOM has decided to implement the 8% interest rate mortgage program with total investment of MNT240 billion. The central bank will provide the fund using the principal's repayment of its mortgage-backed securities, and commercial banks will provide funding of not less than the sum provided by BOM to mortgage loans. The program is expected to run from May 2020 until the end of this year.

02B - Support policies for long-term lending info_outline
02B1 - Interest rate reductions

No amount/estimate: The BOM reduced the policy rate twice - 11 March 2020 by 100 bps to 10% and 13 April 2020 by 100 bps to 9%. 26 June 2020, BOM announced that it will keep its policy rate unchanged. 14 September 2020, The BOM announced the lowering of its policy rate to 8%. On 23 November 2020, the BOM announced further reduction to 6%. 18 December 2020, The BOM announced that it will keep the current policy rate of 6% unchanged [update].

02B2 - Other policies to support long-term lending

No amount/estimate: 18 March 2020, The BOM and the Financial Regulatory Commission implemented temporary financial forbearance measures on prudential requirements, loan classifications, and restructuring standards.

02C - Loan guarantees MNT107,504,234,118 USD39,000,000

April 2020, Guarantees to support vulnerable businesses amounting to USD39 million.

03 - Direct long-term lending info_outline MNT663,000,000,000 USD240,520,759
03A - Long-term lending info_outline

No amount/estimate: (i) April 2020, A comprehensive set of fiscal measures has been announced, pending parliamentary approval in early April, including an increase in soft loans from the development bank to cashmere producers; (ii) 23 November 2020, The BOM will introduce a long-term refinancing instrument aimed at supporting SMEs and non-mining exports.

03B - Forbearance MNT663,000,000,000 USD240,520,759

(i) No amount/estimate: 13 April 2020, The BOM allowed existing consumption loan borrowers to defer their principal and interest payments by up to 12 months; (ii) 12 June 2020, The government of Mongolia, together with the BOM and commercial banks, has approved decisions to make 6-month deferrals on consumer and business loan repayment and their interests for 90 days, and to extend the repayment of mortgage loans by six months. The BOM announced that commercial banks have allowed to defer repayment of mortgage loans worth MNT500 billion in total since the decision was issued; (iii) 7 August 2020, The Monetary Policy Committee decided to prolong the implementation of restructuring and extending the maturity on consumer loans for lenders experiencing difficulties in their loan repayments due to the current economic circumstances until 31 December 2020. 23 November 2020, This has been extended to 1 July 2021. Lending contracts of around 76,000 borrowers have been amended for issuance of consumer loans amounting to MNT663 billion (from the previous MNT500 billion).

04 - Equity support info_outline
05 - Health and income support MNT5,518,793,142,824 USD2,002,087,958
05A - Health support MNT198,193,703,412 USD71,900,000

March 2020, Health sector measures (USD71.9 million).

05B - Income support MNT5,320,599,439,412 USD1,930,187,958
05B1 - Tax and contribution deferrals and policy changes
05B2 - Tax and contribution rates reduction MNT30,000,000,000 USD10,883,292

31 December 2020, The government approved the cancellation of penalties for late payment of social security contributions due between 1 October and 31 December 2020 (estimated at MNT30 billion) [update].

05B3 - Wage support and subsidies to individuals and households MNT426,157,810,118 USD154,600,000

(i) March 2020, Measures supporting citizens (USD154.6 million), which includes (a) Personal Income Tax exemption (USD63.2 million); (b) Job retention allowance (USD18.4 million); (c) Child money program (USD12.4 million); (d) VAT refunds (USD14.4 million); (e) Erdenes Tavan Tolgoi Dividends Payout (USD46.2 million). Erdenes Tavan Tolgoi is a state-owned enterprise where each Mongolian citizen owns a share.

05B4 - Subsidies to business MNT4,214,441,629,294 USD1,528,900,000

March 2020, Support to vulnerable businesses and fiscal stimulus measures (USD1,567.9 million), which includes (a) Exemption on social insurance (USD288.2 million); (b) Social insurance penalty exemption (USD4.2 million); (c) Corporate Income Tax exemption (USD10.8 million); (d) Exemption for tax penalties and fines (USD5.4 million); (e) Rental relief (USD7.2 million); (f) Import tax and duties exemption of food products (USD3.6 million); (g) Cashmere sector support (USD118.1 million); (h) Discount on agricultural equipment (USD12.3 million); (i) Capital projects (of which two-thirds does not yet have financing) (USD1,079.1 million).

05B5 - Indirect income support
05B6 - No breakdown (income support) MNT650,000,000,000 USD235,804,666

13 December 2020, The government decided to write off payments of utility bills (electricity, heat, water, and waste bills) of households and some enterprises for seven months with MNT650 billion (USD235.8 million) funding from Erdenet Mining Corporation, one of Mongolia's biggest state-owned enterprises, from 1 December 2020 to 1 July 2021 [update].

05C - No breakdown (health and income support)
06 - Budget reallocation info_outline

No amount/estimates: 5 August 2020, A presentation on making amendments to the 2020 general budget of Mongolia has been delivered at the Cabinet meeting. The Cabinet decided to continue some measures, which are being taken to provide support to people’s livelihood and health and preserve the employment amid the COVID-19 pandemic, until the end of 2020.

07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received MNT8,097,655,694,329 USD2,937,638,454
08A - Swaps info_outline MNT6,000,000,000,000 USD2,176,658,454

31 July 2020, The Bilateral Currency Swap Arrangement of CNY15 billion (MNT6 trillion) made between the Bank of Mongolia and the People’s Bank of China has been successfully renewed for 3 more years until 2023.

08B - International loans/grants MNT2,097,655,694,329 USD760,980,000
08B1 - Asian Development Bank MNT587,965,465,059 USD213,300,000

(i) 13 February 2020, Fifth Health Sector Development Project (USD1.20 million); (ii) 12 March 2020, Regional Improvement of Border Services Project (USD0.08 million); (iii) 2 March 2020, Improving the Preparedness and Response to Novel Coronavirus Outbreak (USD0.23 million); (iv) 25 March 2020, Asia Pacific Disaster Response Fund and Technical Assistance - COVID-19 Emergency Response (USD1 million); (v) 22 April 2020, Enhancing Gender Equality Results in East Asia (USD0.05 million); (vi) 30 April 2020, Supporting the Credit Guarantee System for Economic Diversification and Employment Project (USD24 million); (vii) April 2020, Nonsovereign Operations: Trade Finance Program (Additional Financing) - guarantee (USD10.38 million) [update]; (viii) April 2020, Nonsovereign Operations: Trade Finance Program (Additional Financing) - loan (USD0.74 million) [update] with co-financing (USD0.03 million); (ix) April 2020, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD0.77 million); (x) 7 May 2020, Fifth Health Sector Development Project - additional financing (USD29.88 million); (xi) 12 May 2020, COVID-19 Rapid Response and Expenditure Framework CPRO (USD100 million); (xii) 3 June 2020, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) (USD0.07 million); (xiii) 25 June 2020, Addressing and Preventing Domestic Violence in Mongolia during the COVID-19 Crisis (USD0.40 million); (xiv) 2 July 2020, Shock-Responsive Social Protection Project (USD26.4 million); (xv) 14 July 2020, Strengthening Integrated Early Warning System in Mongolia (USD0.55 million); (xvi) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (xvii) 17 August 2020, Strengthening Institutional Capacity to Respond to COVID-19 (USD0.35 million); (xviii) September 3, COVID-19 Emergency Response (USD1.50 million); (xix) 29 September 2020, Wheat Supply Chain and Food Security Project (USD15 million); (xx) 27 October 2020, Managing the Risks of Food Insecurity in Mongolia during the COVID-19 Crisis (USD0.40 million); (xxi) 18 November 2020, Supporting Startup Ecosystem in the Central Asia Regional Economic Cooperation Region to Mitigate Impact of COVID-19 and Support Economic Revival (USD0.05 million) [update]; (xxii) 26 November 2020, Addressing Health Threats in the Central, West and East Asia Region (Additional Financing) (USD0.04 million) [update].

08B2 - Other MNT1,509,690,229,271 USD547,680,000

(i) 25 March 2020, The World Bank mobilized USD2.2 million to help strengthen Mongolia’s hospital services in the wake of the COVID-19 pandemic. The funding will be used to purchase the most needed medical diagnostic equipment in the country (loan); (ii) 2 April 2020, The World Bank’s Board of Executive Directors approved USD26.9 million for the Mongolia COVID-19 Emergency Response and Health System Preparedness Project to meet emergency needs in the face of the pandemic and to better prepare for future health crises (loan); (iii) April 2020, UN COVID-19 Response and Recovery Fund, a UN inter-agency fund mechanism established by the UN Secretary-General to help support low and middle income programme countries to respond to the pandemic and its impacts including an unprecedented socio-economic shock, has allocated USD1 million to Mongolia (grant); (iv) May 2020, The World Bank is reprioritizing USD15 million under the existing Employment Support Project to support certain relief measures of the government’s economic stimulus package in response to COVID-19. This support will cover out-of-pocket social insurance contributions for an estimated 120,000 individuals-including the self-employed, micro-entrepreneurs, and those informally employed-for a period of five months (loan); (v) May 2020, USAID provided nearly USD1.2 million for health assistance to the Mongolian Government to prepare laboratory systems, activate case-finding and event-based surveillance, and support technical experts for response and preparedness, and more (grant); (vi) 3 June 2020, The IMF has approved the request for emergency financial assistance under the Rapid Financing Instrument (RFI) of about USD99 million. This emergency financial assistance will help support foreign exchange reserves, create fiscal space for essential pandemic-related expenditure, and catalyze donor support (loan); (vii) 12 June 2020, the Government of Japan has decided to provide JPY1.2 billion (about USD11.6 million) as part of the non-refundable assistance to promote economic and social development, and carry out human resources development program to the Government of Mongolia; (viii) 15 June 2020, Germany's Federal Ministry of Defense will grant EUR1 million (about USD1.1 million) to Mongolia to procure medical devices, medicines, and protective equipment for Central Military Hospital; (ix) 16 June 2020, Asian Infrastructure Investment Fund (AIIB) approved financing under COVID-19 Rapid Response Program (USD100 million); (x) 19 June 2020, USD20 million IDA credit for the Mongolia Emergency Support and Employment Support Project; (xi) No amount/estimate: 8 July 2020, WHO presented personal protective equipment, diagnostic tests, and other medical equipment to the Ministry of Health in aims of providing assistance in the fight against the coronavirus infection; (xii) 21 July 2020, The European Union announced that it will provide EUR37.5 million (USD39.5 million) to Mongolia for its COVID-19 response through short-, medium-, and long-term projects; (xiii) August 10, The International Atomic Energy Agency (IAEA) donated medical equipment, worth MNT511.6 million (USD0.18 million), such as portable X-Ray machine, real time RT-PCR test kits, reagent, etc. to Mongolia under the framework of inter-regional technical cooperation project INT0098, ‘Strengthening Capabilities of Member States in Building, Strengthening and Restoring Capacities and Services in Case of Outbreaks, Emergencies and Disasters’; (xiv) 9 October 2020, The Japanese government will provide Mongolia with JPY25 billion (USD230 million) of loan with an interest rate of 0.01%.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) 13 February 2020, Temporary suspension of coal exports to the People's Republic of China; (ii) 30 June 2020, Re-opening of children playground centers except of PC game centers, summer camps, religious and cultural centers, cinema theatres, snooker centers, and karaokes. However, public protests and mass gathered sports contests will remain prohibited. By reviving the operations, it is expected to keep around 10,000 jobs.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

13 February 2020, Travel ban was imposed from high-risk countries.

12B - Measures affecting business and workplace

(i) 13 February 2020, The authorities declared the state of high alert and quickly implemented a broad range of measures including social distancing, public events cancellations, and school and university closures; (ii) 29 July 2020, The government discussed and approved terms and arrangement for the re-opening of all levels of educational institutions, i.e., classes will be given in a combination of a physical classroom learning and online lessons and online classes of all levels of educational institutions will begin from September 1; (iii) 21 December 2020, The government announced a strict-lockdown regime from 23 December 2020 until 6 January 2021. 4 January 2021, The government extended the lockdown until 11 January 2021 [update].

12C - Others