ULAN BATOR Oct. 5 (Xinhua) -- The Asian Development Bank (ADB) on Thursday approved a loan of 100 million U.S. dollars to strengthen Mongolia's fiscal, financial, and economic resilience.
"Mongolia is vulnerable to volatility in commodity markets and other exogenous shocks because of its dependence on mining revenues," said Hans van Rijn, ADB principal public management specialist.
"To shore up against the impact of this volatility, the Strengthening Fiscal, Financial, and Economic Resilience Subprogram 1 supports reforms to strengthen tax revenue mobilization, debt management, banking sector stability, and the role of the private sector in economic development," he added.
Mongolia's economy experiences repeated boom-and-bust cycles. The current growth trajectory is the third major expansionary economic cycle since 2008, underpinning the importance of implementing and accelerating structural reforms to build resilience, the ADB said.
The program supports tax revenue growth through structural improvements in domestic tax administration and increased alignment with international tax treaties around profit shifting and the automatic exchange of information.
The reforms would strengthen the upstream environment for private sector development through relevant legal reforms, support for public-private partnerships, and enhance the performance of the Development Bank of Mongolia. ■