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$90 million World Bank guarantee expected

Fabris

Montenegro is currently negotiating with the World Bank in order to obtain a new $90 million guarantee and thus be able to borrow up to $270 million in the international market. The money would be used for refinancing of the public debt, says the Vice-Governor of the Central Bank, Nikola Fabris, in his interview with Pobjeda daily.

He says they expect the guarantee to be approved in the beginning of next year. „The best option would be to use these funds for refinancing the public debt. Borrowing guaranteed by the World Bank ensures low interest rates and favorable repayment terms (grace period and longer repayment period),” emphasized Fabris.

He reminded of the fact that representatives of the International Monetary Fund (IMF) and the World Bank had estimated Montenegro’s achieved results in the process of fiscal consolidation, as positive.

Taking into account that the World Bank guarantee and emitted Eurobonds provide funds for financing the public debt for this and next year, a possible slowdown of GDP growth wouldn’t change anything, according to Fabris.

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