[1] Six years later, Mongolia received a $45 million three-year loan under the Enhanced Structural Adjustment Facility (ESAF) in 1997.
[2] Through this loan and support from IMF, Mongolia began to make economic reforms, which included liberalization of wages and prices, allowed a larger mining capacity,[3] a reduction in import restriction, privatization of some state enterprises, the establishment of a commercial banking system, easing of capital controls and a floating exchange rate system for managing its money supply.
[4] In addition, the progress stalled in 1998 due to large declines in export prices, spillovers from regional crises and political problems.
Based on the impressive economic growth in the past, the IMF executive board approved Mongolia's Second Annual Program under ESAF.
The drop in commodity prices and collapse in foreign direct investment slowed the economy.