Vienna, 30 November 2011 Soft Loan Framework Agreement signed with Mongolia Market presence of Austrian companies to be enhanced

On 28 November, a Soft Loan Framework Agreement was signed in Ulan Bator between Austria and Mongolia, enabling and promoting closer economic cooperation between Mongolia and Austria. The Agreement was signed by the Austrian Ambassador in Beijing, Dr Martin Sajdik, and Mongolia's Finance Minister, Sangajav Bayartsorgt, in the presence of numerous media representatives.

Both countries are very keen to develop their economic and financial relations. Mongolia, as an emerging market, is an increasingly attractive market for the Austrian export industry, offering excellent business potential. In 2011, Austrian exports indeed already rose by almost 500%. Through the Framework Agreement, Austria is strengthening economic ties, and thereby taking advantage of Mongolia's current economic boom.

The Agreement creates a framework for favourable credit financing of selected projects of common interest, such as, for instance, in the water and healthcare sectors, which are being implemented through the engagement of Austrian companies. The projects are being chosen very carefully and must meet with Austria's own economic-policy interests, while at the same time serving the sustainable development of Mongolia.

Through the Framework Agreement which has now been signed, Austria is granting Mongolia a credit line of EUR 40 million at preferential terms. The Agreement will become operative on 1 January 2012 and will initially have a two-year term.

Soft loans are especially favourable loans to developing countries and emerging markets. Austria has already concluded such soft loan framework agreements with Bosnia-Herzegovina, Albania, Vietnam, Egypt and Tunisia, and is in negotiations with further countries.