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

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.

Additional details

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.

Number of official sources

3

Number of total sources

8