MONGOLIA AND JAPAN SIGN LOAN AGREEMENT

Ulaanbaatar /MONTSAME/ Mongolia will receive a soft loan from the Japan International Cooperation Agency (JICA) to reform its budget and economy. The Government of Mongolia and the JICA signed a JPY 32 billion Loan Agreement on December 5. The Agreement was signed by Ch.Khurelbaatar, Minister of Finance and Kazuhiko Koshikawa, Executive Senior Vice President of the JICA, who is visiting Mongolia. Regarding the Agreement, an Intergovernmental Bill of Exchange for ‘Development Policy Loan on Budget and Socio-Economic Reform’ was also signed by D.Tsogtbaatar, Minister of Foreign Affairs and Masato Takaoka, Ambassador of Japan to Mongolia. The JPY 32 billion loan is the first batch of USD 850 million soft loan, to be granted from Japan to Mongolia within the International Monetary Fund’s Extended Fund Facility program. The loan has 0.8 percent annual interest with term of 20 years. “We will work on transferring the sum to Mongolia in the near future,” said Vice President Mr. Koshikawa, speaking to the press after the signing ceremony. He also spoke of his trip to Khushig Valley where the new Ulaanbaatar International Airport has been built and meeting with corresponding officials regarding the air pollution in Ulaanbaatar and environmental degradation in Mongolia. “JICA will work with Mongolia on solving these problems,” he said. For his part, Finance Minister Ch.Khurelbaatar appreciated the long-standing support and financial assistance from Japan, which were crucial in overcoming the obstacles Mongolia faced over the years. Kh.Aminaa