East Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 2,239.53
% of GDP (2019): 16.63%
% of Regional Total Package: 0.08%
Package Per Capita in USD: 706.43
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 MNT324,000,000,000 USD117,539,556
01A - Short-term lending info_outline

No amount/estimate: September 14, 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 [update].

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

(i) March 11, 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; (ii) No amount/estimate: June 26, 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

May 20, 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

No amount/estimate: The BOM (i) reduced the policy rate twice - March 11 by 100 bps to 10% and April 13 by 100 bps to 9%. June 26, BOM announced that it will keep its policy rate unchanged. On September 14, the BOM announced the lowering of its policy rate to 8% [update]; and (ii) narrowed the policy rate corridor to ±1%. March 18, 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, 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: April, 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.

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

(i) No amount/estimate: April 13, The BOM allowed existing consumption loan borrowers to defer their principal and interest payments by up to 12 months; (ii) June 12, 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) August 7, 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 of December 2020. 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 - Government support to income/revenue MNT4,838,793,142,824 USD1,755,400,000
05A - Health MNT198,193,703,412 USD71,900,000

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

05B - Non-health MNT4,640,599,439,412 USD1,683,500,000

March: (i) 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; (ii) 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).

06 - Budget reallocation info_outline

No amount/estimates: August 5, 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 MNT7,408,470,858,071 USD2,687,618,454
08A - Swaps info_outline MNT6,000,000,000,000 USD2,176,658,454

July 31, 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 MNT1,408,470,858,071 USD510,960,000
08B1 - Asian Development Bank MNT532,779,958,212 USD193,280,000

(i) February 13, Fifth Health Sector Development Project (USD1.40 million); (ii) March 12, Regional Improvement of Border Services Project (USD0.08 million); (iii) March 2, Improving the Preparedness and Response to Novel Coronavirus Outbreak (USD0.23 million); (iv) March 25, Asia Pacific Disaster Response Fund and Technical Assistance - COVID-19 Emergency Response (USD1 million); (v) April 30, Supporting the Credit Guarantee System for Economic Diversification and Employment Project (USD24 million); (vi) April, Nonsovereign Operations: Trade Finance Program (Additional Financing) - guarantee (USD5.76 million) [update]; (vii) April, Nonsovereign Operations: Trade Finance Program (Additional Financing) - loan (USD0.56 million) with co-financing (USD0.03 million); (viii) April, 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); (ix) May 7, Fifth Health Sector Development Project - additional financing (USD30 million); (x) May 12, COVID-19 Rapid Response and Expenditure Framework CPRO (USD100 million); (xi) June 3, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) (USD0.07 million); (xii) June 25, Addressing and Preventing Domestic Violence in Mongolia during the COVID-19 Crisis (USD0.40 million); (xiii) July 2, Shock-Responsive Social Protection Project (USD26.4 million); (xiv) July 14, Strengthening Integrated Early Warning System in Mongolia (USD0.55 million); (x) July 24, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (xi) August 17, Strengthening Institutional Capacity to Respond to COVID-19 (USD0.35 million); (xii) September 3, COVID-19 Emergency Response (USD1.50 million) [update].

08B2 - Other MNT875,690,899,859 USD317,680,000

(i) March 25, 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) April 2, 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, 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, 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, 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) June 3, 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) June 12, 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) June 15, 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) June 16, Asian Infrastructure Investment Fund (AIIB) approved financing under COVID-19 Rapid Response Program (USD100 million); (x) June 19, USD20 million IDA credit for the Mongolia Emergency Support and Employment Support Project; (xi) No amount/estimate: July 8, 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) July 21, 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’.

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

(i) Feb 13, Temporary suspension of coal exports to the People's Republic of China; (ii) June 30, 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

(i) Feb 13, The authorities declared the state of high alert and quickly implemented a broad range of measures including a travel ban from high-risk countries, social distancing, public events cancellations, and school and university closures; (ii) July 29, 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.