Montenegro will borrow 25 million euros from the IBRD

Montenegro will borrow 25 million euros from the International Bank for Reconstruction and Development (IBRD).

It is a supplementary loan for the financing of the development policy - the resilience of the fiscal and financial sector, and it will be linked to a World Bank (WB) guarantee of EUR 80 million on the basis of which Montenegro recently borrowed EUR 250 million for 12 years and with an interest rate of 3,63, XNUMX percent.

The money was then taken from Credit Suisse, Societe generale and OTP group, it is stated in the information of the Ministry of Finance about the initial basis for negotiations for this loan.

A maturity period of up to 25 years is proposed, including a five-year grace period and half-yearly installment payments.

That charge was approved after Montenegro asked the SB to provide it with additional funding to meet increased requests for funds for the program of measures to combat the crisis caused by the pandemic.

"The Ministry of Finance continued discussions with the SB on the possibility of additional financing of the budget for the current year and the creation of a fiscal reserve for the following year. The SB provided Montenegro with additional funds of 25 million euros. This financing will be related to the realized PBG 2 and to the activities that were achieved through this arrangement and which should be monitored through the matrix of public policies and results agreed through the PBG 2 arrangement with the SB," explained the document of the Ministry of Finance.

As in the previous case, as explained by this department, the approval of the PBG 2 arrangement is conditioned by the realization of strong reform processes and a stable political situation. "Consequently, the condition for entering this form of cooperation is the fulfillment of the set of IBRD requirements, contained in the Matrix of public policies and results, which is Annex 1 of the Program Document for the proposed second guarantee based on public policy in the area of ​​fiscal and financial resilience. The conditions from the Matrix mainly refer to measures to stabilize public finances and further reforms", the information explained.

The team for negotiations regarding additional debt with the use of the previous guarantee of the SB included the Minister of Finance Darko Radunović, Secretary General Nemanja Katnić, Director General of the State Treasury Directorate Dragan Darmanović, Director General of the Budget Directorate Bojan Paunović, and the representative of Montenegro in the SB Nina Vujošević.