Mongolia Seeks IMF Cash to Revive Economy as Investment Dries Up
- New government needs money to ‘stabilize economy,’ IMF says
- Commodity rout cut growth to 2.3% last year from 17% in 2011
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Five years ago Mongolia’s 17 percent growth rate, vast coal and copper resources and strategic location next to China made it an emerging-market darling. Today its financial leaders are headed for Washington to meet with the International Monetary Fund to seek assistance to deal with an economic crisis.
Newly elected Prime Minister Erdenebat Jargaltulga is making the request for funds as his country is reeling from the downturn in mining following a peak in commodity prices in 2011. Disputes with investors including Rio Tinto Group haven’t helped, leading to a collapse in foreign investment and leaving the government with a growing budget deficit.