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Radunović: Indebtedness at the domestic market will be given advantage

Darko Radunović

All the obligations will be services without problems in the forthcoming year. Deposits made in the current year will be used for the payment of debt in 2019.

“The Government will give advantage to indebtedness at the domestic market and issue of local bonds. Up to 15 million EUR of loan granted by the World Bank is expected and it will be used for the reduction of surpluses in state administration”, said the Minister of Finance, Darko Radunović.

“During 2019, overall obligations will amount 373,6 million EUR whereas the payment of interest and other expenses will amount 95,75 million EUR. Deposits made in the current year are estimated to be from 180 to 200 million EUR and they will be used for payment of debt in 2019”, said Radunović.

He explains that the new indebtedness will mostly be made at the domestic market.

“Additionally, commercial arrangements with domestic banks may come into consideration, depending on the interests of the banks and conditions under which the funds will be provided”, says Radunović.

Montenegro is currently carrying out reforms referring to the reinforcement of fiscal sustainability and overall financial resistance of the economy.

“These reforms will influence the second guarantee from the World Bank. The objective of obtaining this guarantee is to ensure that Montenegro has favorable resources for re-financing part of the public debt which is due on payment in 2020. Dynamics and the quality of implemented reforms will influence the date of obtaining this guarantee”, says Radunović.

Radunović also spoke about huge number of employees in the state administration. In that context, he said that the goal of the Government is to increase employment through increase of employees in the private sector.

“In July of 2018, the Government adopted the Public Administration Optimization Plan. In the first two months of the implementation of this plan, the number of employees was reduced by 339. Redundancies will certainly be provided with severance pays”, explained Radunović.

Income collection growth was influenced by better collection of TAV (by 14,3%). Increase has also been recorded in the second big category of income – taxes and contributions on earnings.

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