According to Vasilije Kostić, the economic analyst, successful bond issue, conducted under very favorable conditions, means that the international capital market has trust in Montenegrin public finances, their perspective and sustainability.
„And that again, reinforces the trust in our fiscal sustainability, which may result in some positive changes in our credit rating“, said Kostić.
It was reported on Thursday from the Government, that Montenegro successfully brought out bond issue, worth 500 million EUR. Interest rate of 3,375 % and a seven-year long repayment period enabled refinancing of the bonds which were due to be paid in 2020 and 2021.
This will have multiple effect for public finance in Montenegro. Kostić added that refinancing of the bonds has great importance, since they were big in amount and threatening for the process of fiscal consolidation. The deadline of 7 years provides more relaxed framework for the implementation of fiscal consolidation and the reduction of public debt.
