The Government of Mongolia has decided to take out a loan of 25 million USD from Asian Development Bank.

At the joint plenary meeting of the Standing Committee on Budget and Economy today, it was decided that this loan should be pursued and the issue should be discussed at the general session of the Parliament. The terms of the loan are as follows:

• Repayment term of 25 years
• Interest rate of 2 percent
• Total loan of 25 million USD

The loan's funds will be allocated to 20 professional training and production centers and 30 secondary schools for buying equipment.

Students at higher education institutes and vocational schools need equipment for practice and training in classroom environments. For example, students studying to pursue careers as hairstylists and in food service need equipment and materials to learn the skills required for such careers.

MP S.Ganbaatar mentioned, “To take out loans for the education sector is the right thing to do. But it needs to be clarified what percentage of the loan is going to be spent on buying equipment, because most expenses are used for salaries for foreign advisors. Moreover, there is always somebody who causes confusion and gaps by buying equipment at a total cost of 30 million MNT and reporting that the cost of the equipment was 300 million MNT."

Minister of Labor S.Chinzorig answered the MP, stating, “Seventy-three percent of the loan will be dedicated to buying equipment, three percent for advisory services, and 24 percent for operational costs.”

Twenty-two members out of 35 participated in the standing committee meeting, and the loan proposal was encouraged and approved with 100 percent of the vote.