Government and the World Bank (WB) talks about borrowing $90m, ie from €200m to €250m in case of guarantees, are entering the final stage. WB is supposed to decide on this arrangement in December this year or in January 2018, the Ministry of Finance told Pobjeda.
Namely, the ministry is negotiating with WB on the public development loan or the policy based guarantee.
The ministry explains that this would provide financing 2018 obligations, with the possibility of using funds for refinancing Eurobonds, which are due in the period from 2019 to 2021.
The WB board of directors will decide on this matter at the end of December 2017, or in January 2018. The ministry adds that there are conditions for this borrowing, which is a common practice of the international financial institutions.
“The conditions for the arrangement with the WB include continuous and consistent implementation of the fiscal consolidation measures defined by the plan for remediation of the budget deficit and the level of public debt and the state’s fiscal strategy, the ministry said.
