Tokyo extends US$850m in loans to Mongolia as part of bailout deal

Tokyo

JAPAN has pledged US$850 million in loans to Mongolia as part of a US$5 billion multilateral and bilateral bailout package being coordinated by the International Monetary Fund (IMF) to support the country's struggling economy.

Japan and South Korea will together provide up to US$3 billion in aid to cash-short Mongolia, according to the IMF.

The bailout deal must still be approved by the Mongolian parliament when it reconvenes early next month.

In recent years, Mongolia "has been hit hard by the sharp decline of commodity prices and a collapse in foreign direct investment," …