Standing committee backs draft general credit agreement consideration

Ulaanbaatar /MONTSAME/ The parliamentary Standing committee on economy Wednesday focused on a draft general credit agreement of USD one billion, which will be established between the government of Mongolia and the Export-Import Bank of China. Majority of the gathered agreed that the discussion of the draft agreement must be continued and decided to convey their proposals and conclusions to the Standing committee on security and foreign policy. The draft, presented by B.Bolor, the Minister of Finance, to the Standing committee meeting, was finally approved during a bilateral meeting in Beijing on October 28 of 2015 after it had been exchanged three times for consideration and sides had concurred to finance projects on the energy and other sectors. The loan has two-per cent interest per year, the repayment period will be 20 years, where first seven years will be freed from the basic payment. The loan is expected to finance 85% of the each project. Since the discount level is 29%, this loan is considered as a soft loan, in accordance with the law on debt management. The credit agreement is expected to be signed during upcoming this November state visit of the President to China. According to A.Tleikhan MP, the loan will finance projects on construction of the Eg River hydropower station, on augmenting a capability of the thermal power station of Erdenet city, on building over-head voltage lines between Ulaanbaatar and Mandalgobi soum of Dundgobi aimag, on sub-stations, and on constructing a 20km Gachuurt--Nalaikh--Choir road.