Active Development AidData Chinese Aid

Chinese Government reschedules the Government of Mongolia’s outstanding debt obligations via 10-year maturity extensions

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Mongolia
Country	Mongolia
Start Date	Jun 27, 2002
End Date	Apr 04, 2028
Duration	9,413 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`40206`

Grant Description

On June 27, 2002, the Government of Mongolia and the Chinese Government signed a debt rescheduling agreement, which extended the maturity lengths of two loans that the Government of Mongolia had previously contracted by ten years: a loan worth 22.5 million in convertible rubles that was contracted in 1958 and a loan worth 45 million in convertible rubles that was contracted in 1960.

Both of these loans were originally contracted at a 1% annual interest rate and scheduled for repayment between 1962 and 1976 with export products.

At the time of the 2002 debt rescheduling, the Government of Mongolia’s outstanding repayment obligations under these two loans amounted to 28.3 million in convertible rubles.

📋 Staff Comments

The proceeds of the loans that were contracted in 1958 and 1960 and they were to be used by the borrower to build a textile plant, paper mill, plywood factory, glass works, roads, bridges, irrigation projects, and electric power stations. The Mongolian translation of the June 27, 2002 debt rescheduling agreement is Монгол Улсад олгосон 2 удаагийн бага хүүтэй зээлийн хугацааг сунгах тухай Монгол Улсын Засгийн газар, БНХАУ-ын Засгийн газрын хоорондын солилцох захидал. The agreement was signed by Chinese minister of foreign trade and economic cooperation, Shi Guangsheng, and Minister of Industry and Trade of Mongolia Ch. Ganzorig.No transaction amount is recorded since this project represents a loan rescheduling, not an original flow of resources to recipient country.

📚 Sources & References

Mongolia
China agree on aid, debt relief.
THE PEOPLE'S REPUBLIC OF CHINA, АВСТРАЛИ УЛС
China and Mongolia: Recurring Trends and Prospects for Change
Public Perception of Chinese Investment in Mongolia
The Bidding For Mongolia
CURRENT SITUATION OF CURRENT SITUATION OF MONGOLIA MONGOLIA -CHINA TRADE AND CHINA TRADE AND ECONOMIC COOPERATION AND ECONOMIC COOPERATION AND FURTHER TRENDS
CURRENT SITUATION OF MONGOLIA-CHINA TRADE AND ECONOMIC COOPERATION AND FURTHER TRENDS Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Mongolia

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