India closely working with Mongolia to implement US$ 1 billion credit line: MEA

India is closely working with the Mongolian government to implement the US$ 1 billion credit line announced during the visit of Prime Minister Narendra Modi to Mongolia in May 2015 in a manner that is deemed beneficial to the friendly people of Mongolia by its leadership, said the Ministry of External Affairs (MEA) on Thursday.

"We are aware of the difficult budgetary situation that Mongolia is facing due to various factors including high cost of servicing of debt raised by them in the past. As a close friend of Mongolia, which regards India as its 'third neighbour' and 'spiritual neighbour', we are ready to work with Mongolian people in this time of their difficulty," said Vikas Swarup, MEA spokesperson, here during his weekly media briefing.

"During the visit of Prime Minister to Mongolia in May 2015, PM had conveyed to the Mongolian leadership that India will extend support to Mongolia in diverse fields. We had announced a credit line of US$ 1 billion during the visit. Mongolian leadership was highly appreciative of this gesture and conveyed that it would help them in obtaining investment and financial resources from their other partners," said Swarup while answering a question on Mongolia's request of assistance from India.

He, however, refused to comment on Mongolia's relationship with China. "In so far as Mongolia's relationship with China is concerned, I would not like to comment," he added.