Barska Plovidba has made a payment of $1.6 million to the Export-Import Bank of China as part of its ongoing debt obligations related to the financing of two bulk carriers, named Bar and Budva. This transaction represents the largest portion of the current semi-annual installment and was funded through the company’s operational revenues.
The company anticipates settling the remaining balance of approximately $0.18 million from this installment shortly, pending receipt of charter income from the vessel Budva. Following this payment, Barska Plovidba’s outstanding principal on the loan is projected to be around $23.3 million.
The financing for these vessels was secured through a long-term loan agreement with the Chinese bank, with repayment terms extending until 2033. To date, Barska Plovidba has repaid a total of $34.8 million, primarily from its own resources, although state support was provided in earlier years during periods of liquidity challenges.
Company management views the ability to cover the current installment from operating revenue as a sign of improved financial management and operational stability, particularly after navigating several years characterized by fluctuating charter rates and high maintenance costs.
The company’s debt situation and repayment trends are under close observation due to the maritime sector in Montenegro being significantly affected by historical foreign-currency loans. Barska Plovidba’s recent payment is seen as an indication that it is progressively enhancing its capability to fulfill long-term financial commitments without needing extraordinary government assistance.
