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AKIPRESS.COM - The International Monetary Fund (IMF) will delay disbursing bailout funds to Mongolia after the country's prime minister and Cabinet were toppled in a parliamentary no-confidence vote this month week, the Fund said.
Cash-strapped and debt-ridden Mongolia was granted a $5.5 billion rescue package from the IMF and other partners in May after clashes with investors, government overspending and declining commodity export revenues tipped the country into an economic crisis last year.
However, the Mongolian People's Party (MPP) government, which negotiated the IMF deal, was ousted by parliament this month amid allegations of corruption and incompetence, as well as a damaging July presidential election defeat.
The IMF office in Mongolia confirmed to Reuters that what would have been the first review of the bailout package would now be delayed until a new administration is formed.
That review had been expected to result in the disbursement of about $37.82 million of the funds.