Yesterday, the State Structure Standing Committee discussed the loan agreement between the Mongolian Government and Indian Export-Import Bank, which was presented on 14th April.
During his visit in Mongolia on 16th-17th May 2015, Indian Prime Minister Narendra Modi said that India is ready to provide a loan to Mongolia in order to support the economy and society. The two sides finalized the Indian loan agreement on 7th-9th March. The term of the loan will be 20 years with an annual rate of 1.75%. During first five years, Mongolia will be exempt from paying any interest. In addition, under the agreement infrastructure projects valued in excess of USD 200 million and strategic projects of over USD 100 million will be free from any interest payment for the first seven years.
The protocol of the Government session held on 21st March, notes that the Indian loan will be used for railway projects. In a vote as to whether to accept the loan or not, 90% of the Standing Committee voted in favor.