Mongolia becomes a donor to the World Bank’s International Development Association

The World Bank said on October 17 that Mongolia has become a donor to the International Development Association (IDA), Reuters reported. IDA is the World Bank Group’s fund that provides concessional loans and grants to the world’s poorest countries.

Mongolia’s parliament approved a contribution of MNT 4.8 billion, or about US$1.3 million, to IDA’s 21st replenishment (IDA21).

From recipient to contributor

Since joining IDA in 1991, Mongolia has received more than US$1.62 billion in financing from the fund. As its economy and incomes grew, it graduated from IDA’s concessional financing in July 2020 and now borrows only on market-based terms from the International Bank for Reconstruction and Development (IBRD).

“Mongolia’s contribution to IDA21 marks an important milestone in our longstanding partnership with the World Bank and reflects our commitment to international solidarity,” Finance Minister Mendsaikhan Zagdjav said. “Having benefited firsthand from IDA’s support, we recognise the vital role of concessional financing,” he added, saying Mongolia is proud to support other countries in pursuing their development.

Reaction on X

The news drew attention from Mongolian users on X, many of whom described it as a new chapter in the country’s development history.