“We are in a deep state of -->-->-->economic crisis,’’ Finance Minister Choijilsuren Battogtokh said in a nationally televised address last week. “We came into a situation where we may not be able to afford to finance salaries and operational costs of government departments, such as the Mongolian military who protect our borders and national security, the social and health employees who are in charge public health, as well as individuals in culture and sport.’’
Mongolia had foreign currency reserves of $1.3 billion at the end of June, according to data published by the central bank. That cash pile declined 23.1 percent from a year earlier after the previous government increased spending ahead of the elections.
A team of International Monetary Fund representatives arrived in Mongolia Tuesday and will begin talks with the government on resolving economic challenges, according to local television.
Neil Saker, the IMF’s resident representative in Mongolia, declined to give details of the meetings, saying it’s the “IMF’s routine global practice to establish early contact with newly elected governments.”