Улаанбаатар
Japan to continue development aid in the form of soft loans
VideoIn connection with the working visit of Japanese Prime Minister Mr Shinzo Abe to Mongolia on October 22, Mr Fukasawa Hiroshi, First Secretary of the Japan Embassy in Mongolia, gave an interview.
Since 1977, Japan has provided a total of JPY 238 billion in aid to Mongolia in the light of bilateral economic cooperation. The Japanese aid had played a crucial role in overcoming the financial and economic difficulties Mongolia faced during the transition period to market economy. This assistance and support targeted all spheres including infrastructure, construction, education and healthcare. In recent years, Japan has been implementing soft loan projects to train Mongolian human resources for its industrial sector and empowering higher education institutions.
“With a view to provide equal access to economic growth and comply with Millennium Development Goals and other development policy goals, the Government of Japan is planning to target its development aid at ensuring sustainable development of mining, consolidating governance, promote economic growth beneficial to all people, and increase the potential of Ulaanbaatar”, said Mr. Hiroshi.
Since Mongolia’s economy has increasingly grown and the share of GDP per capita has reached USD 3770, the amount of grant aid provided to Mongolia is to be cut significantly. In the future, soft loan projects and programs will tend to dominate. Currently, international loans with the lowest interest rate have been granted by Japan. In particular, Japan provides soft loans with an interest rate of 0.1 to 0.2 percent and from 14 to 40-year terms. This is the most favorable condition.
A total of 332 soums of all 21 aimags of Mongolia are benefitting from projects and programs that are being carried-out by the Government of Japan in association with the Japan International Cooperation Agency.
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