JPY 32 BILLION LOAN AGREEMENT RATIFIED

Ulaanbaatar /MONTSAME/ On December 7, Parliament discussed and adopted a bill on a JPY 32 billion loan agreement for the Japan International Cooperation Agency’s (JICA) Fiscal, Social and Economic Reform Development Policy Loan. The loan agreement was signed by the Government of Mongolia and the JICA on December 5 in Ulaanbaatar. When approved, the loan will be spent on ensuring sustainability of macro economy, assisting the vulnerable groups and supporting economic growth. The loan has a 0.8 percent annual interest, 0.1 percent upfront fee, 6-year moratorium and 20-year maturity. Finance Minister Ch.Khurelbaatar presented the bill and said, “The loan will compensate for budget deficit by helping finance a MNT 9.6 trillion expenditure projected in the budget.” Within the International Monetary Fund’s Extended Fund Facility program, Mongolia will receive a USD 850 million soft loan from the Government of Japan, and the JPY 32 billion or USD 283 million is the first batch. The Parliament voted up the bill by 77.3 percent. Kh.Aminaa