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Germany and Mongolia share a long-standing relationship spanning a range of areas. It is said that 30,000 Mongolians speak German, about 1% of the total population. The former East Germany was a valued partner country of Mongolia until the collapse of the Soviet Union. The reunified country of Germany then assumed this role in the early 1990s. Since 1992, KfW has been active in Mongolia as part of financial cooperation on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

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