The balance of long-term debt of the Municipality of Tivat at the end of the third quarter of this year is EUR 5.923.319.
This is stated in the information on the implementation of the Municipality's budget for 20254 for the period from January 1 to October 1 of this year.
From the current state of long-term debt, EUR 1.459.556 refers to the debt owed to the Crnogorská kommercialja banka for a loan in the amount of three million euros that the current city administration had to take out in the fall of 2020.
Then, after the DPS lost the elections and power in Tivat after more than 20 years, the new city administration led by the civic list Narod objejaja found a catastrophic state of the city's finances, an almost completely empty budget and multi-million unpaid debts.
That is why the administration of the new mayor Željko Komnenović had to borrow urgently from the banks in order to "put out financial fires" that threatened to completely block the Municipality because the creditors intended to start procedures for forced collection of their claims.
The most favorable offer to the Municipality was then given by CKB bank, from which a loan was taken in the amount of three million euros, of which 2,74 million were withdrawn and so far 1,28 million euros have been repaid to the bank. In the meantime, through savings measures and rationalization of local government operations, the city's finances have been stabilized and the Municipality has completely recovered financially, so, for example, so far the city's revised budget for 2024 amounts to 29,24 million euros. The municipality of Tivat currently nominally has 20.646.459 euros of long-term foreign debt to the German KfW bank based on loans that have been provided to Montenegrin coastal municipalities through the Ministry of Finance for the past fifteen years for the implementation of large projects for the construction of new and improvement of existing water and sewage infrastructure.
However, the Municipality has so far withdrawn and used the amount of 20,64 million euros from the 12,2 million euros granted to it, which financed the construction of the main city sewerage collector, secondary and tertiary sewerage networks in several parts of the city, as well as the construction of facilities for the purification of waste water, which was done in Krtoli, and the reconstruction and improvement of the water supply network in various parts of the municipality of Bokelje, at least. Of the 12,2 million withdrawn, 7.736.459 euros have been paid to German creditors based on the principal of the debt.
The municipality did not issue any bonds or guarantees, and therefore does not have any long-term debts.
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