The South Korean government will loan Mongolia USD 300 million for health and air pollution reduction projects. The agreement was signed on December 2 by Mongolian Finance Minister S.Bayartsogt and South Korean Ambassador Jon Il.

The money will be loaned by South Korea’s Economic Development Cooperation Fund (EDCF), which was established by the South Korean government in 1987 to support economic growth in developing countries.

EDCF has assisted Mongolia since 1993 in the communications, technology, health, energy, and transportation sectors. Seven EDCF projects have been implemented in Mongolia.

The USD 300 million loan will be used build a National Center for Diagnostics and Treatment, as well as other programs and projects, all of which are to be completed by 2015. S.Bayartsogt noted that the terms of the 35-year loan are favorable to Mongolia, with an interest rate of 0.15 percent.

The South Korean government is also interested in financing renewable energy projects, and says it will make available loans with an interest rate of 0.05 percent for wind and solar power, biotechnology, garbage recycling, clean water systems, and sewage treatment facilities.