Approved loan of 250 million euros

The Ministry of Finance has completed the procedure of securing a loan of 250 million euros with a World Bank guarantee worth 80 million, said the Director General of the Treasury Directorate, Dragan Darmanović.

He told Radio Montenegro that a credit arrangement was concluded with the Syndicate of Banks, which secured 250 million of the 350 to 400 million estimated that the state coffers will lack to rehabilitate the consequences of the coronavirus epidemic.

"The amount has already been withdrawn and the money is in Montenegro, so funds have been provided to finance all needs from the budget. Therefore, there is no fear that there could be problems for the realization of obligations. The loan was approved for 12 years, and the interest rate is 3,63 percent," said Darmanović.

He also pointed out that the Ministry of Finance is negotiating with other international financial institutions in order to provide the rest of the missing funds.

"In the coming period, we will continue negotiations with the World Bank, as well as the IMF, the European Commission, and domestic and foreign commercial banks to provide the necessary funds. At the moment, we don't see any obstacles to realizing that, so in the coming months we will manage to conclude all the arrangements, which will round off all the needs for financing the budget this year," Darmanović emphasized, as reported by the RTCG portal.

He also assessed that Montenegro has very good cooperation with the European Investment Bank, as well as the Development Bank of the Council of Europe, the German KFW, and others, which, he says, are an important partner for the implementation of infrastructure projects.

"In the coming months, we expect to conclude negotiations with them for the provision of funds, which will most likely be implemented through banks to support small, medium and large companies for the rehabilitation of the consequences caused by the coronavirus," announced the director general of the Treasury Directorate.

Darmanović reminded that the European Union has allocated 53 million euros of support to Montenegro, of which 40 million will go directly to the state budget, which, he concluded, reduced the need for borrowing.