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Cabinet officials

Mongolia and Japan Sign Loan Agreement to Combat COVID-19

Strategic Insights

— 1 min read

The Standing Committee on Security and Foreign Policy of the State Great Hural met online with a 66.6 percent attendance, discussing the draft law on ratification of the Loan Agreement between the Government of Mongolia and the Japan International Cooperation Agency. The loan agreement, totaling 25.0 billion yen (approximately 233.0 billion yen), aims to stimulate the economy, protect public health, and support livelihoods during the pandemic.

Key Takeaways:

  • The loan agreement was introduced by Ch. Khurelbaatar, Member of Parliament, Member of the Government, and Minister of Finance.
  • The project will be used to implement social protection measures, support income, and protect public health during the COVID-19 pandemic.
  • The loan repayment period will be 15 years, with a 4-year grace period, 0.01 percent annual interest rate, 0.1 percent down payment, and a one-year loan disbursement period.
  • Members of Parliament T.Dorjkhand, D.Tsogtbaatar, B.Enkh-Amgalan, and N.Enkhbold expressed support for the loan agreement, while MP N.Altankhuyag opposed it.
  • The draft law was signed by the Government of Mongolia and the Japan International Cooperation Agency.

Statistics:

  • The loan agreement totals 25.0 billion yen (approximately 233.0 billion yen).
  • 71.4% of members voted in favor of ratifying the draft law on ratification of the Loan Agreement.
  • The loan repayment period will be 15 years.
  • The grace period will be 4 years.
  • The loan interest rate will be 0.01 percent per annum.
  • The down payment will be 0.1 percent.

Sources:

  • "Standing Committee on Security and Foreign Policy" (Exact format and wording as in source material).
  • "Loan Agreement between the Government of Mongolia and the Japan International Cooperation Agency for Kovid-19 Plague Response Emergency Response Loan and Draft Exchange Note between the Government of Mongolia and the Government of Japan" (Exact format and wording as in source material).

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