Montenegro has made significant progress in repaying its loan to the Chinese EXIM Bank for the highway section from Smokovac to Mateševo. According to the Ministry of Finance, six installments have been paid so far, totaling $289,888,175 since July 2021. However, there is still a remaining debt of $721,284,842, with a maturity date set for January 2035. This means that Montenegro has 22 loan installments left to repay.
The loan agreement with the EXIM China Bank was signed in 2014, with a grace period of six years and a repayment term of 14 years. Additionally, the Ministry of Finance has entered into a hedging arrangement with four banks to manage the loan effectively. Under this arrangement, Montenegro pays the loan in euros at an interest rate of 0.98%, compared to the previous arrangement where the loan was paid in dollars at an interest rate of two percent.
It’s noteworthy that revenue of 17,244,551 EUR has been generated since the opening of the first section of the Bar-Boljare highway, Smokovac-Mateševo, which was inaugurated for traffic on July 13, 2022. This progress demonstrates Montenegro’s commitment to infrastructure development and financial responsibility.
