Based on the budget revision and the decision on borrowing for this year, will enter the foreign market and try to issue Eurobonds up to €500m, finance minister Darko Radunovic announced.
Asked how much Montenegro will borrow based on budget revision and how much it will save based on interest reduction, the minister said that this was an interesting question he could not fully answer.
“The experience we had with this first tranche, with the help of the World Bank (WB) guarantee, was that we got a 12-year maturity, a grace period of four years, while the interest was a six-month Euribor increased by 2.95,” Radunovic told reporters at the signing of the loan agreement for the implementation of the project Institutional Development and Strengthening Agriculture in Montenegro – MIDAS 2.
He believes that Montenegro will not get these conditions now, but somewhat less favourable. However, they would be certainly significantly more favourable than the current ones.
“I expect that we will get 3.25-3.5% interest rate, which would mean 1.5% savings, which is significant sum for a €500m borrowing,” Radunovic said.
