Standing committee passes bills on foreign loans www.zgm.mn
Parliamentary Standing Committee on Budget discussed the bill on the Government’s rights to draw loans from foreign countries and international organizations, and passed the General Financing Program between the Government of Mongolia and the Asian Development Bank (ADB) and the draft amendment on the general agreement and conditions between the Mongolian Government and the Government of the Republic of Poland.
The Government has negotiated with the ADB to cooperate on finance, agriculture, education, health, and agriculture in 2017-2020. In this context, USD 334 million will be allocated to Mongolia. The fund will be used in five projects including vegetables, border services, irrigation, regional roads, and free economic zones.
Plus, the European Bank for Reconstruction and Development (EBRD) offered to grant loans up to USD 300 million. The loan will have a maturity of 10-16 years with a moratorium of three years. Up until today, the EBRD has invested 99 projects that amount to EUR 1.6 billion and the financing of this project was directed entirely towards private sectors.
However, Mongolia will use the current loan to build the road from Darkhan to Ulaanbaatar. The road will have four lanes and two lanes will be constructed by the ADB and the remaining two lanes will be built by the EBRD. The spending of remaining funds is still unclear, but the Finance Minister Khurelbaatar Chimed said that the total amount of fund will USD 300 million.
Published Date:2019-03-20