On Tuesday, the Government approved in principle a proposal to take a loan for USD 500 million from the Government of China. The loan is agreed between Mongolian Ministry of Finance and the Export-Import Bank of China. A formal order by the Prime Minister asking the Ministry to sign the agreement will be issued soon.
Mongolia intends to use the loan to set up factories to process meat, milk, and flour, to buy small tractors and a grain elevator, to build roads and to construct flyovers. The loan is repayable in 20 years with 2% annual interest. Repayment will begin only after the seventh year.
Minister of Road, Transportation, Construction and Urban Development Kh.Battulga, Minister of Education, Culture and Science Yo.Otgonbayar, and Ulaanbaatar Mayor G.Munkhbayar have been insMitructed to draw up technical and economic feasibility studies for the projects to be implemented with the loan.