Indian USD 1 billion loan may be spent on infrastructure development of Mongolia

2017-06-05 11:15:52
Ulaanbaatar /MONTSAME/ Prime Minister J.Erdenebat met with his Indian counterpart Narendra Modi during his attendance in the Saint Petersburg International Economic Forum (SPIEF) 2017 on June 2. The Mongolian PM informed that the Mongolian side is interested in dedicating the USD 1.0 billion soft loan from India to promoting infrastructure development, instead of financing railway projects as agreed previously.

The change has to be looked through by the Indian side accordingly with internal regulations, and the Indian side will try to settle the matter as much in favor of Mongolia as possible, said Mr Modi.
The Government of Mongolia intends to dedicate the funds to building oil processing plants and supporting other import-substituting productions.

During this meeting, the heads of governments discussed about opening a general education school with professional Indian teachers in Ulaanbaatar on financing of the Indian Government’s non-refundable aid. The new school is expected to pave the way for Mongolians to preparing highly-skilled professional cadres for communications and information technology sphere in cooperation with India, which leads the world in training the best IT specialists.

In 2016, the bilateral trade turnover was USD 27 million, in which imports constituted USD 24.8 million and exports, USD 2.2 million.
The Indian Prime Minister expressed interest of India in buying minerals, especially, coking coal, fluorspar, copper concentrate, uranium and iron ore, as well as cashmere and wool.
The dignitaries reassured the mutual interest in promoting bilateral trade, current state of which is below the level of cooperation that the two countries can potentially achieve.
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