Ulaanbaatar
Export credit agreement issue to be consulted with parliament
PoliticsUlaanbaatar /MONTSAME/ The cabinet meeting on Monday discussed and then backed a general intergovernmental agreement with India on export loan of USD one billion
A decision was also made to consult this matter with parliament. If a related parliamentary Standing committee backs the agreement, an ordinance of the PM will be issued to authorize an official to sign the intergovernmental agreement.
By an order of the PM, a working group has been already set up to offer projects and programmes eligible for being financed with money from this soft loan. This working group had concurred with the Indian side on establishing the credit agreement, credit terms and rules of the Exim Bank of India. In accordance with the general terms, the 20-year soft loan has an interest of 1.75% per year. The Mongolian side is to be freed from the loan's basic payment first five years.
In cases of infrastructure projects of over USD 200 million and of strategically important projects of over USD 100 million, the term is to be 25 years and the free-from-the basic payment period--seven years.
