Austria–Mongolia Financial Cooperation Treaty: up to €65 million in concessional loans, in force 1 August 2026
Austria and Mongolia have concluded a financial cooperation agreement under which Austria supports up to €65 million in concessional (soft) loans for Mongolian projects, primarily in healthcare and infrastructure. The agreement entered into force on 1 August 2026 and is valid for two years, with the possibility of renewal.
What changed
A new bilateral treaty (BGBl. III Nr. 102/2026) between Austria and Mongolia took effect on 1 August 2026. It provides a framework for Austria's Finance Ministry to support concessional credits of up to €65 million, refinanced by OeKB (Oesterreichische Kontrollbank) through commercial banks.
Who is affected
Austrian exporters of goods and services may benefit from this export-financing framework. The Mongolian government (Ministry of Finance) is the borrower and guarantor. Mongolian public institutions listed in Annex II — mainly hospitals — are the end beneficiaries.
Key financial terms
Loans are offered as pre-mixed credits with a 19-year term (4-year grace period, repayment in 30 semi-annual instalments), 1.00% p.a. interest, 0.90% p.a. guarantee fee, and a grant element of 42.81% (valid until 14 January 2027). The minimum grant element required is 35%. Terms may change if Mongolia's OECD country-risk classification changes.
What to look out for
Goods and services purchased under this agreement are exempt from VAT and customs duties in Mongolia. The agreement may be terminated with six months' written notice, but existing loan contracts remain valid after termination or expiry. Annual reviews between both Finance Ministries are foreseen.