A joint meeting of the Standing Committees on the Economy, on Security and Foreign Policy,and on the Budget yesterday discussed the draft cooperation negotiation that will be made between Mongolian Government and Monaco, and the draft negotiation with Asian Development Bank on a project to develop regional roads and additional financing. Both drafts were approved and would now go to Parliament.

According to Finance Minister S.Bayartsogt, the total foreign debt of Mongolia has reached MNT2.8 trillion, equal to the whole annual state budget. Of this 31.7 percent is in USD, 26.5 percent in Japanese yen, 28.1 percent in euro and 13.7 percent in other currencies.

N.Batbayar and Ts.Batbayar had doubts about the agreement with Monaco, with which diplomatic relations were established only two years ago. Monaco has implemented an archeological project worth USD20,000. N.Batbayar said it is a tiny country whose main interest appeared to be Mongolian natural resources. He also felt Monaco’s offer of help was meant to help it join the European Union. Ts.Batbayar said Parliament should be embarrassed about an agreement worth only MNT30 million. However, other MPs felt if Monaco became a EU member, there will be one more country there to support Mongolia.

Opinions differed on the agreement with the Asian Development Bank, which has already given a loan of USD 43.1 million for the Choir-Sainshand-Zamiin Uud road. A Millennium Challenge Corporation grant of USD79.7 million will also be spent on the road. The Government now wants a further ADB loan of USD8 million and a grant of USD16 million as irrecoverable aid. The loan has to be repaid in 24 years, and carries 1 percent interest in the first eight years and 1.5 percent for the rest. MPs felt loans with defined conditions may provide low interest funding but were less acceptable than high interest loans.

Minister for Finance S.Bayartsogt stated that Mongolia will no longer take loans with defined conditions.