Standing committee backs credit agreement with India

Ulaanbaatar /MONTSAME/ The parliamentary Standing committee on budget discussed Tuesday a matter on consulting a credit agreement to be established between the governments of Mongolia and India. A majority backed this credit agreement. As known, during his state visit to Mongolia May 16-17 of 2015, the Prime Minister of the Republic of India Narendra Modi expressed a readiness to grant Mongolia a loan of one billion US dollars, with aims to help promote our social-economic development and tackle challenges. Later, a working group was set up to offer India projects and programs that can receive money from this loan. In March of this year, our government discussed with India the credit terms and its procedure. By the agreement's general terms, the 20-year soft loan has an interest of 1.75% per year, the first five years the Mongolian side will not pay the loan's basic payment. The same day, the Standing committee carried out first discussions of draft amendments to the laws on VAT, on budget, customs tariff and tax.