MFSS negotiates: With EU partners on refinancing old debts and Chinese credit

"The goal is to open up space for the possible refinancing of old debts, while reducing the interest rate and currency risk. It is not about a new loan, but about the need to refinance old debts," the government said unofficially.

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Refinancing would avoid the currency risk for the loan in dollars for the highway: Spajić, Photo: Savo Prelević
Refinancing would avoid the currency risk for the loan in dollars for the highway: Spajić, Photo: Savo Prelević
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The Ministry of Finance and Social Welfare (MFSS) is negotiating with partners from the European Union regarding the refinancing of unfavorable loans from the past, "Vijesti" has learned.

According to unofficial information, the assessment of the department headed by Milojko Spajić is that it will bring savings of over 100 million euros to the state of Montenegro.

In the executive branch, as "the News reported, they assess that the obligation of the MFSS and this Government is to actively manage the public debt and protect against exposure to currency risk, as well as an additional reduction in borrowing costs, and what will this refinancing of inherited debts and obligations contribute to, among which also has a dollar loan for the first section of the highway.

The Ministry will propose to the Assembly an amendment to the Draft Law on the budget for this year, in order to create legal prerequisites for reprogramming and refinancing of old credit arrangements. The Assembly should start discussing the budget tomorrow.

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photo: Shutterstock

"The goal is to open up space for the possible refinancing of old debts, while reducing the interest rate and currency risk. It is not about a new loan, but about the need to refinance old debts," the Government said unofficially.

The MFSS previously announced that the goal was to get rid of unfavorable loans, as well as those with serious currency risks. Recently, it was announced that negotiations are underway with European partners to refinance the loan on more favorable terms for the state.

Montenegro has a dollar loan with the Chinese Exim Bank for the unfinished first section of the highway Podgorica - Mateševo.

There is a serious currency risk arising from changing the dollar/euro exchange rate, which the previous governments did not protect the country from. The debt now amounts to about one billion euros.

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