The Montenegrin economy has been growing which is best proved by the 6-month results both from this and last year. It is dynamic, with high growth rates, low inflation, along with continuous increasing of new capacities, stable finances, strong investment activity … We have to do everything we can to remain an entrepreneurial society with high export rates, Dr. Božo Mihailović, a professor at the Faculty of Economy of the University of Montenegro and the President of the Montenegrin Association of Economists, told in an interview with Pobjeda daily.
He said: “It doesn’t mean there are no problems and risks. Our economy is facing certain problems like every other economy. Economic problems exist everywhere, in the region and beyond its borders. Indebtedness represents one of our greatest problems, but the Government of Montenegro opted for the right option – to borrow €500 million under more favorable conditions in order to refinance obligations from the next year, when, according to all analyses, better conditions for borrowing are expected.”
Even though the country’s indebtedness represents a huge problem, we should not panic, according to Mr Mihailović.
“We should take a look at the reasons for the indebtedness. It’s very important that we didn’t borrow money in the past several years for filling gaps in the budget, or for paying off salaries, pensions and social contributions,” he stressed.
Some media reported that the govt was going to borrow €500 million in order to spend it by the end of the year, but “it’s not true, and the state data and official statements clearly indicate so.”
