CABINET BACKS CREDIT AGREEMENTS

Ulaanbaatar, Mongolia, /MONTSAME/ The cabinet meeting on Wednesday discussed and then backed in principle intergovernmental agreement on financial cooperation between Mongolia and Germany and an agreement to be established between Mongolia's government and the Reconstruction and Credit Bank of Germany. In frames of the financial cooperation agreement, Mongolia will receive EUR 8.5 million for the “Energy benefits-2” project that will be implemented at the 4th thermal power station in the city. Money of EUR 4.5 million will be given to Mongolia for the project on developing the local transportation infrastructure with an aim to support food supply of the UB city. The project on energy aims to reduce a consumption of raw coal, used for producing energy and electricity, by introducing the latest technologies of Germany and the European Union. In a scope of the project on improving food supply for UB, it has been planned to run 29.4 km paved-road from Jargalant village of the city's Songinokhairkhan district to Tov aimag's Batsumber soum. The loans' interest is 0.75 per cent per year, the period of payback is 40 years. The period of the basic debt is ten years. ** ** ** The same day, the cabinet backed in principle an agreement on financial cooperation to be established between the governments of Mongolia and Austria. The matter on it will be accorded with related Standing committee of parliament. This agreement will be valid for two years, and a soft-loan of up to EUR 40 million will be given to Mongolia.

B.Khuder