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Wednesday, April 24, 2024
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Montenegro, The Ministry of Finance: Deutsche Bank is a respectable partner

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The Ministry of Finance, on behalf of the Government of Montenegro, provided EUR 100 million for the financing of budget obligations in the current year, through a credit arrangement with Deutsche Bank AG, and the aforementioned funds are available to the state as of today.

As announced by this department, the contract with Deutsche Bank was concluded for a period of three years, with a grace period of 12 months and an interest rate consisting of the six-month EURIBOR plus a margin of 5.9%. The first installment of interest is paid six months after the withdrawal of the loan funds, while repayment of the principal will begin twelve months after the withdrawal of those funds and will be carried out by paying five equal installments of the principal.

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– Also, in addition to interest costs, a loan processing fee is paid on the loan amount in the amount of 1.35% of the total value of the loan, i.e. in the amount of 1.35 million euros. The loan processing fee is paid as a deduction from the total amount of the loan – it is stated in the announcement.

The Ministry of Finance states that the loan of 100 million is from a respectable partner, foreseen by the Law on the budget for the current year and was realized in order to secure the missing funds, and in the function of regular and smooth settlement of all state obligations.

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– Bearing in mind market trends, the aforementioned arrangement was concluded under acceptable and sustainable conditions, contributes to fiscal resilience and represents a step closer to closing the necessary financial structure for this year. Therefore, the realized debt is an additional support in facing the state with global risks, but also proof of the responsible conduct of the economic policy of the Government, whose primary task is to protect citizens and the economy from such shocks, while creating conditions for economic sustainability and prosperity of society – they state.

The ministry reminds that the budget for 2023 defines that the state can borrow up to EUR 600 million through the conclusion of credit arrangements with international financial institutions, with domestic or foreign banks, through the issuance of government bills and/or bonds on the domestic and/or international market, as well as by concluding bilateral or other credit arrangements.

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