SOFT-LOAN FROM GERMANY FOR PROJECTS

Ulaanbaatar, Mongolia /MONTSAME/ Two projects will receive soft-loans in frames of a financial cooperation agreement which has been established between the governments of Mongolia and Germany. The first part of the soft-loan of up to EUR 8.5 million will be spent for the "Energy benefit-2" project to be realized at the #4 thermal power station, and the second part of the loan of EUR 4.5 million will be exploited for a project on developing the rural infrastructure in order to improve the food supply for the capital city. The soft-loans' interest is 0.75 per cent per year, repayment term is 40 years, first ten years are freed from the payment of the principal debt. The intergovernmental financial and technical cooperation started in 1992, and soft-loans and non-refundable aid of about EUR 265 million have been given to Mongolia so far. B.Khuder