The Government of Montenegro has exited the hedging arrangement of the highway loan, which served as insurance for the state against currency risk. This information was confirmed by the Minister of Finance, Aleksandar Damjanovic. He has pointed out that in the current uncertain environment, the assessment was that the continuation of the hedging arrangement would be risky because it would be difficult to plan and predict the conditions that could happen in the coming weeks, months and even years.
The hedging agreement, which was concluded two years ago, defined that after two years the arrangement would be reviewed and a decision would be made on exiting the arrangement or on its continuation.
Damjanovic has told Radio Montenegro that consultations were held within the Ministry of Finance, with banks that are partners in hedging as well as other relevant institutions, and based on that, a decision was made for Montenegro to take advantage of the agreement and exit the hedging arrangement.
He stated earlier that Montenegro had saved €23.71m based on the four paid installments.
Whether there will be room to conclude a new arrangement in the coming period will depend on the global situation and the achievement of global stability on the market, Damjanovic explains.
