BEIJING, May 25 (Reuters) - The International Monetary Fund (IMF) said on Thursday it approved a three-year financial arrangement of about $434.3 million to support Mongolia's economic reform programme.

The IMF said in a statement that Mongolia was hit hard by the sharp decline of commodity prices and the slowdown in key export markets, and the government is therefore implementing a programme to pave the way to economic recovery.

It said the total financing package for Mongolia, with other financial partners such as the Asian Development Bank, amounts to about $5.5 billion.

(Reporting by Sue-Lin Wong and Yawen Chen; Editing by Michael Perry)