Parliament ratifies amendments to China’s USD 1 billion loan agreement

2017-06-13 13:18:47
Ulaanbaatar /MONTSAME/ The State Great Khural (Parliament) approved and ratified the amendments to the General Agreement on Soft Loan signed by the Government of Mongolia and the Export-Import Bank of China on June 9.

Originally, the general agreement on USD 1 billion was established on November 10, 2015 and ratified by Mongolian Parliament on November 26, 2015. The Chinese soft loan to Mongolia has an annual interest of 2 percent, 20- year repayment and 7-year grace period.

The original agreement set out that projects included in the scope of funding should be financed 85 percent by the loan and 15 percent by Mongolian government’s funding. The recent amendments offered to increase the share of Chinese loan in project financing up to 95 percent. The parliament approved this change with majority vote.