On Monday, the Standing Committees on Budget and on Economics jointly discussed a proposed USD 20 million (JPY 1.5 billion) loan agreement between the Government of Mongolia and the Japanese Organization for International Cooperation.

Members of the committee decided to submit the proposal to the Standing Committee on Security and Foreign Policy.

Prime Minister S.Batbold is expected to sign the agreement during his official visit to Japan.

N.Batbayar suggested the Premier could also discuss construction of a new airport in the Khushigt Valley when he discusses the loan agreement with Japanese officials.

Batj.Batbayar said the USD 20 million loan should not be used for poverty reduction and health insurance programs.

Finance Minister D.Khayankhyarvaa and other officials stated that Mongolia could use the money to help cover the country’s budget deficit. Officials said Mongolia has met the conditions in the first phase of the agreement, and further phases could still be discussed.