The cabinet supported a draft agreement in principle to be established between Mongolia’s Ministry of Finance and the Export-Import Bank of China on exploiting an export loan of USD 500 million rendered from China’s government.The Prime Minister’s ordinance will be soon issued to authorize signing the agreement after consulting with the relevant standing committee in Parliament. In accordance with a plan of the government, the loan will be spent for erecting processing factories of meat, milk, flour, an elevator for grain, and small tractors.
Moreover, it is planned to finance a project of road works of constructing overpasses.
Kh.Battulga, Minister of Road,Transportation, Construction and Urban Development, Yo.Otgonbayar,Minister of Education, Culture and Science,and G.Monkhbayar,the City’s Mayor were assigned to draw up a Feasibility Study for the construction works.
The loan of USD 500 million will be repaid within 20 years with two percent interest per year. The first seven years of the loan is grace period.