AIIB approves loan to support Mongolia's COVID-19 response

The Asian Infrastructure Investment Bank (AIIB) said Friday its board of directors has approved a loan of 100 million U.S. dollars to Mongolia to support its COVID-19 Rapid Response Program.

The program, the bank's first financial project in Mongolia, aims to mitigate the adverse health, social and economic impacts caused by the pandemic, and to alleviate poverty, AIIB said in a statement.

The loan will render support to the government's funding for public health, protection of vulnerable groups, and aid businesses and fiscal stimulus measures.

"Our first project financing in Mongolia comes during a challenging time as the country navigates this global crisis. The additional capital AIIB is providing will support the government's plans for health protection and poverty alleviation during this critical time," said AIIB Vice President, Investment Operations, Konstantin Limitovskiy.

This is a policy-based loan, co-financed by the Asian Development Bank, according to the statement.