ULAN BATOR, June 22 (Xinhua) -- The Asian Development Bank (ADB) has approved a loan of 26.4 million U.S. dollars to lessen the socio-economic impacts of the COVID-19 pandemic on poor and vulnerable groups in Mongolia, especially women and children, local media said Monday.
"The loss of jobs and income in the wake of COVID-19 coupled with rising food prices will particularly affect poor and vulnerable people," said Karin Schelzig, the ADB's principal social sector specialist.
"The Shock-Responsive Social Protection Project will expand food support and cash transfers on a temporary basis, utilizing the targeting and delivery systems of two established social assistance programs," she said.
Mongolia's early and robust response to contain the spread of COVID-19 has helped keep the number of cases relatively low, but the health risk level remains high, and the curtailment of economic activity has affected many parts of the economy, said the ADB.
The ADB estimates show that Mongolia will suffer significant investment and consumption shocks in addition to negative global demand spillovers in 2020.
The pre-crisis poverty rate in Mongolia was 28.4 percent. A significant share of Mongolians who are technically non-poor live precariously close to the poverty line.
The project will finance the temporary increase in the monthly benefit levels for all child money and food stamp beneficiaries through September 2020, the ADB said.
The child money program reaches more than 1 million Mongolian children through electronic transfers. Food stamps are cash-like benefits that are delivered either as electronic payments to e-cards or as physical vouchers in more remote areas. Food stamps can be used to purchase 10 staple food items, including milk and vegetables.
Food stamps benefit 240,500 Mongolians, including more than 118,000 children, and women and girls comprise 53 percent of the recipients, according to the bank. The program reaches 44,325 families, the poorest 5 percent.
The project is a key part of the ADB's package of support to mitigate the impact of COVID-19 in Mongolia.
As of Monday, Mongolia has confirmed 213 COVID-19 cases. No local transmissions or deaths have been reported in the country so far. Enditem
