“I want to say that Montenegro can recover very quickly and it also can sink very quickly. It is a fate of small economic systems – they have their advantages and disadvantages. In times of economic growth and boom in the region, we had a surplus and then we even thought we had solved our economic problems. But the crisis severely hit the Montenegrin economy, so we had to compensate for lack of foreign direct investments by taking out these types of loans from the various banks or by issuing bonds,” Mr Drecun explained.
As he said, this was something that would stay and that the Prime Minister was particularly aware of, so his appeal to attract foreign investors simply looked like a cry of a desperate man whom nobody understood.
“I think that is why the crisis in the ruling coalition, i.e. in its minor member, occurred – because some people do not realize importance of foreign direct investment for Montenegro. With implementation of four to five investment projects, public debt would not be a problem for Montenegro,” Mr Drecun said.
He believes that beginning of the highway construction will have positive impact to GDP.
“We expect the implementation of several tourism investments, so I am optimistic in that sense. But if nothing is done, then we will end up in a very difficult situation in a few years.”
At the end of 2006 the foreign debt of Montenegro amounted to €701 million, whereas on December 31st 2014, it exceeded €2 billion. In terms of the debt, Montenegro owes most for the issue of Eurobonds – as much as €647 million.
