ANNOUNCEMENT 18 Jul 2016
On 17 July 2016, the Export-Import Bank of Korea (Korea Eximbank) signed two loan agreements with the Mongolian Ministry of Finance under The Economic Development Cooperation Fund (EDCF).
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 18 July 2016, Korea Eximbank Supports Transportation and Education Projects in Mongolia through EDCF Loans: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=1&menuid=002001007&pagesize=10&boardtypeid=284&boardid=54198
Guide to the Export-Import Bank of Korean: http://ehf.koreaexim.go.kr/File.down?file=/attach_file/conts/en/_English_guide_book.pdf
ExImBank official website: https://www.koreaexim.go.kr/site/main/index002
The EDCF loan agreement between the Korea Eximbank and Mongolia have a total value of USD 44.6 million. The two loan agreements will finance the Renewal of Intercity Bus Fleet Project Phase Ⅱ and the ICT Integrated Class Establishment Project with USD 25 million and USD 19.6 million respectively.
In this context, an official of the Eximbank stated: "The successful implementation of the projects will prove the excellence and top-level technology of Korean automobiles, ICT equipment, and digital contents, which will eventually facilitate Korean companies' participation in projects in Mongolia."
As such, the financing of these projects is also connected to the export of Korean goods in the area of buses as well as ICT equipment and digital content related to the education sector.
The Economic Development Cooperation Fund
The EDCF provides low-interest and long-term credit to developing countries for projects seeking to promote industrialisation and economic stability. In some cases, Korean companies are involved in such projects directly or through exports. More information on the Fund can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.