Agreement on China's USD 1 billion soft loan to be amended
The Cabinet has agreed to discuss 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.
Agreement on China's USD 1 billion soft loan is to be amended. The Cabinet has agreed to discuss 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. The Chinese side will render the soft loan of up to USD 1 billion, which will be used to implement projects on infrastructure and other sectors. Once the Mongolian side makes its 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.