Japan to grant Mongolia a 32 billion JPY soft loan

The American Chamber of Commerce in Mongolia

2017-12-06 18:35 GMT+8

Japan is granting a 32 billion JPY (283.3 million USD) soft loan to the Government of Mongolia. The loan agreement was signed by Finance Minister Ch. Khurelbaatar and Foreign Minister D. Tsogtbaatar, representing Mongolia, and Executive Senior Vice President of Japan International Cooperation Agency (JICA) Kazuhiko Koshikawa on December 5.

The soft loan, which will be used to finance social, economic, and budget policy reform, will be granted as the first installment of an 850 million USD soft loan approved by Japan last March, part of the bailout package provided by the International Monetary Fund’s Extended Fund Facility program.

Finance Minister Ch. Khurelbaatar noted that the loan will have a 0.8 percent annual interest rate, a 0.1 percent prepayment penalty, a repayment period of 20 years, and a 6-year grace period for repayment of the principal loan amount.

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