Public debt at the end of last year was 4,1 billion

The total public debt of Montenegro at the end of last year amounted to 4,1 billion euros, or 70,77 percent of gross domestic product (GDP).

"Taking into account the deposits of the Ministry of Finance, including 38,48 thousand ounces of gold, which amounted to 111,75 million euros at the end of last year, the net public debt of Montenegro at the end of last year amounted to 3,99 billion euros, i.e. 68,84 XNUMX percent of GDP," the Ministry's report published today states.

As they explained, the state of public debt in the last three years is characterized by a decrease in absolute amount, which was mostly influenced by the fact that there were no major debt obligations in 2021 and last year.

According to the data of the Ministry, the total state debt, without deposits, at the end of December last year amounted to 4,03 billion euros or 69,46 percent of GDP.

"The total state debt with deposits at the end of last year amounted to 3,91 billion euros or 67,53 percent of GDP," the report states.

External debt amounted to 3,56 billion euros, or 61,37 percent of GDP, while internal debt was 468,76 million euros, or 8,09 percent of GDP.

"The state debt includes part of the local self-government debt, in the amount of 38,73 million euros, based on the contract concluded by the Ministry of Finance with international creditors, and further forwarded to the municipalities in the form of transfer loans," the document explained.

Compared to the end of 2021, there was a decrease in the national debt in the total amount of 63,7 million euros, which is the result of a decrease in foreign debt by 130,92 million euros, and an increase in domestic debt by 67,22 million euros.

"The decrease in external debt was due to the settlement of regular obligations based on credit arrangements concluded with foreign creditors. The increase in domestic debt was due to indebtedness through government bills in the amount of EUR 39 million, as well as through new credit arrangements with domestic commercial banks in the amount of 66 million euros", specified the Ministry.

Bearing in mind that no new credit arrangements in foreign currencies were concluded last year, the currency structure in relation to 2021 has not changed significantly.

As of December 31 last year, the share of euro debt in the national debt is 95,32 percent, while the share of dollars and other currencies is 2,49 percent and 2,19 percent, respectively.

"When we talk about the interest structure of the national debt, it is evident that the debt with a fixed interest rate prevails in the total national debt (78,46%), and that from that aspect the debt portfolio is stable. However, bearing in mind the significant changes in the global financial market which is characterized by an increase in interest rates, both fixed and variable, the impact of these developments on the debt portfolio of Montenegro is expected," said the Ministry.

Debts with a variable interest rate are mostly tied to EURIBOR and make up 21,54 percent of the national debt.

During the last year, the state debt was repaid based on the principal to residents and non-residents, as well as the repayment of obligations from the previous period, in the total amount of 291,65 million euros.

Of the above, the principal was repaid to residents in the amount of 40,49 million euros, as a result of debt repayment based on long-term loans. Principal repayment to non-residents amounted to EUR 251,05 million.

Interest payments, to residents and non-residents, amount to EUR 91,83 million.