The total public debt of Montenegro at the end of last year amounted to EUR 4.1 billion, or 70.77% of gross domestic product (GDP), according to data from the Ministry of Finance.
Taking into account the deposits of the Ministry of Finance, including 38,477 ounces of gold, which, at the end of 2022, amounted to EUR 111.75 million, the net public debt of Montenegro amounted to EUR 3.99 billion, which is 68.84% of GDP – a.
– The state of the 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 2022 – it was explained in the report on the state of the public debt published by the Ministry, and which the Government adopted on Friday in a telephone session.
Namely, compared to 2020, the public debt in 2021 was reduced by EUR 246.16 million, while in 2022, compared to 2021, it was reduced by EUR 60.58 million.
– Observed in relation to GDP, there was a decrease in public debt in 2021 compared to 2020, by 21.33 percentage points, i.e. 13.24 percentage points in 2022 compared to 2021 – it is stated in the document.
When it comes to the total state debt without deposits, it amounted to EUR 4.02 billion or 69.46% of GDP on December 31 last year.
– The total state debt, including deposits, in the same period amounted to EUR 3.9 billion or 67.53% of GDP. The external debt amounted to about 3.55 billion, or 61.37% of GDP, while the internal debt amounted to 468.76 million EUR, which is 8.09% of GDP – they clarified.
The state debt Includes part of the local self-government debt, in the amount of EUR 38.73 million, 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.
– Compared to the end of 2021, there was a reduction in the national debt in the total amount of EUR 63.70 million, which is the result of a decrease in external debt by EUR 130.92 million, and an increase in domestic debt by EUR 67.22 million. The decrease in external debt was due to the settlement of regular obligations based on credit arrangements concluded with foreign creditors – the finance department stated.
As they added, the increase in the 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 EUR 66 million.
Bearing in mind that no new credit arrangements in foreign currencies were concluded in 2022, the currency structure in relation to 2021 has not changed significantly.
Thus, at the end of last year, the share of euro debt in the national debt was 95.32%, while the share of USD and other currencies was 2.49% and 2.19%, respectively.
– When we talk about the interest rate structure of the state debt, it is evident that in the total state debt, indebtedness with a fixed interest rate of 78.46% prevails, and that from that aspect the debt portfolio is stable. However, bearing in mind significant changes in the global financial market characterized by an increase in interest rates, both fixed and variable, the impact of these developments on the debt portfolio of Montenegro is expected – the Ministry stated.
Borrowings with a variable interest rate are mostly tied to EURIBOR, and make up 21.54% of the national debt, they add.
The report states that in the course of 2022, 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 EUR 291.65 million.
– Of the above, the principal was repaid to residents in the amount of EUR 40.49 million, as a result of debt repayment based on long-term loans. Repayment of principal to non-residents amounted to EUR 251.05 million. Interest payments to residents and non-residents amount to 91.83 million – the report of the Ministry of Finance states.
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