Agreement for China's USD 1 billion soft loan to be amended

2017-04-20 13:04:28
Ulaanbaatar /MONTSAME/ The Cabinet agreed to discuss the amendments to the general agreement of up to USD 1 billion soft loan between the Government of Mongolia and Export-Import Bank of the People's Republic of China with corresponding Parliamentary standing committees.

The Chinese side will render the soft loan of up to USD 1 billion, which will be used on infrastructure and other sector projects. Once the Mongolian side (lender) makes their request, the loan will fund 95 percent of the total sum of each project. If the project agreement sets out required budgets, procurement and construction works, those will be included in the portion of the loaner’s payment in the agreement.   

The Mongolian and Chinese sides negotiated the general agreement stating that soft loan has a payback period of 20 years with an annual interest rate of 2 percent, and with a moratorium period of 7 years. The Mongolian Parliament approved the general agreement in November 2015.

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