Cash transfer

Due to the near collapse in trade and aid relations with the Soviet Union, Mongolia requires immediate and substantial infusions of foreign exchange to prepare for the winter of 1991-92. The program will be implemented by the Ministry of Trade and Industry in coordination with the State Bank of Mongolia (International). Dollars provided under the program will most likely be used to finance essential raw materials, intermediate goods, and spare parts required to sustain production of basic light industrial goods as well as to maintain an already depressed standard of living. Included will be materials for light/food industry, industrial oils, and medicines and medical supplies. Due to Mongolia"s near total reliance on the Soviet Union for industrial equipment, special arrangements have been made to permit the procurement of some of these goods from the USSR. No local currency will be generated under the program.