Unfathomable consequences for citizens if drug debts are not settled immediately

It is not realistic for Montefarm to take on debt, because the Government did not provide guarantees. Debt repayment is planned differently, Đikanović believes
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pharmacy, medicines, Photo: Archive "Vijesti"
pharmacy, medicines, Photo: Archive "Vijesti"
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 18.04.2015. 17:37h

The association of wholesalers, which supplies the market with medicines, believes that the Government's conclusions that Montefarm borrow about 15 million euros in order to pay them part of the money owed by the Health Fund for the delivery of medicines will not solve the problem because the Government has not tasked the Ministry of Finance to provide guarantees for credit.

This is what Sreten Đikanović, a representative of the Association of Wholesalers, told "Vijesta".

This year's budget defines that the Government can issue 101 million guarantees for four projects, among which there is no Montefarm.

The suppliers demand that the government urgently pay them 17 million in debt, because otherwise they will be forced to stop the delivery of medicines to pharmacies. They warn that this would lead to an absolute shortage of medicines in Montenegro.

Those 17 million are due debt for the collection of a total of 24 million, which the Fund owes to wholesalers. These are accumulated liabilities for the previous three years.

"Montefarm cannot gain credibility with the banks in order to get a loan of 15 million at an interest rate of up to three percent. Especially if it is known that we pay interest on these debts at a rate of seven to eight percent. "Montefarm can get a loan only with the guarantees of the Ministry of Finance, which is apparently not very interested in solving the problem, even though it was only their "mistake" that it was impossible to pay from this year's budget, which the Parliament made possible through an amendment," said Đikanović.

He pointed out that it is not important to them which method the Government will use, but that the debts are settled urgently, since the consequences can be unfathomable for the citizens. This is because some manufacturers have already suspended drug deliveries due to debt.

"Paying off old debts can solve the problem in the short term. For orderly supply in the long term, it is necessary to systematically solve the drug market by good planning of needs. Montenegro spends the least money per capita on medicines in the region. The introduction of a system of reference prices should be started urgently, which encourages competition among producers", said Đikanović.

The Government's conclusions define that 15 million will be paid to Montefarm next year, in addition to the fund's regular budget. This year's budget, however, defined that the Government should borrow up to the amount of 671 million (amendment of the ruling coalition DPS-SDP), among other things, for all outstanding outstanding obligations of the Fund of 36 million.

Why would Montefarm take a loan when the government has already borrowed 36 million to pay off the debt

The President of the Parliamentary Committee on Health, Zoran Jelić (DPS), who is a signatory of the amendment, when asked by "Vijesti" whether Montefarm should borrow 15 million when the Government has already borrowed 36 million, said that the DPS and SDP made borrowing possible with the amendment, and that it is an internal matter of the Ministry, the fund and Montefarm how they will solve that issue".

"There is a budget position for the money to be paid, but I will not go into the details of how it will be paid." Montefarma's loan is not a new borrowing, but rather an accounting technique of three institutions", believes Jelić.

MP Damir Šehović (SDP), who started the story in the Assembly to resolve the issue of the overdue obligations of the Fund, did not want to speak on that topic yesterday.

They are silent, and there is a threat of a shortage of medicines

"Vijesti" were informed yesterday by the Ministry of Health, headed by Budimir Šegrt, that they "will not advertise" on the topic of debt payments to drugstores.

In the law on health care, for the implementation of which they are in charge, it is specified in Article 18 paragraph 2 that "the citizen has the right to information and notification on all issues related to his health". Because of this problem, there is a threat of drug shortages.

"Vijesti" asked the ministry to explain why they agreed to borrow Montefarm when the money is already in this year's budget and whether they received an explanation from the Ministry of Finance where they will spend 36 million of the Fund's money.

There are also questions about when Montefarm will take on debt and how they will resolve the issue of the remaining debt to wholesalers that will be due.

"Part of the new debt to be channeled into the payment of the fund's debt"

The Ministry of Finance previously informed drug wholesalers that it cannot pay their debt because there is a "technical error" in the budget on the debt write-off item of the fund, where only one euro is written. The Ministry announced that it was an oversight by the deputies who, in an amendment, provided for the payment of the fund's debt from the loan, and that was done by the ruling coalition.

The President of the Committee for Economy, Aleksandar Damjanović, said that "technical correction" was not necessary in 2013, when not even a euro was planned in the budget on the expenditure side for guarantees, and that year 102 million guarantees were paid for KAP loans without rebalancing.

He believes that in the case of debt to wholesalers, the Government should not apply double taxes, but should pay the debt.

"Those who shed crocodile tears because of the illiquidity of the economy should be the last to encourage it by refusing to pay the 36 million they showed in this year's bond issue, without a hair on their head thinking of directing part of the new debt to pay the undisputed debt of the fund. What kind of signal is given to other debtors when the state does not want to pay its debt is not necessary to comment on," said Damjanović.

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