Foreign Affairs Minister of Mongolia L.Purevsuren

The Hindu has reported that Foreign Affairs Minister of Mongolia L.Purevsuren will visit India on Thursday to sign an agreement putting into operation the 1 billion USD line of credit pledged by  Indian Prime Minister Narendra Modi during his May 2015 visit to Mongolia.

On April 26, Mongolia’s parliamentary standing committee on budget approved terms for the 1 billion USD credit line from India. This March, the governments of both countries started discussing the terms of the credit agreement, and the Indian side proposed a 20-year soft loan with a 1.75 percent annual interest rate.

The Hindu wrote that India’s commitment was made after Mongolia reached a deal over the underground development of the Oyu Tolgoi mine, which was widely seen as a positive resolution to long-stalled talks that would pull Mongolia out of its struggles to attract foreign capital over the last couple of years. “India’s credit line will support expansion of the country’s economic capacity and infrastructure,” Prime Minister Modi said in a statement in May 2015.

On Thursday, authorities of the two countries are also expected to discuss the Asia-Europe Meeting Summit which will be held in July in Ulaanbaatar.