The Ministry of Finance borrowed €100m at an almost double-digit interest rate, to which one of the users of social networks sarcastically wrote – how you put us in debt, you made us very sad.
Professionals also believe that something is wrong with the system.
President of the Montenegrin Association of Employers and economic analyst Vasilije Kostic has told CdM that the Ministry of Finance continues to borrow from the banking sector, because it is aware that entering the world financial market would be very questionable and difficult with the uncertain issue of bonds and under potentially very unfavorable conditions of funds provided in such a way.
As he notes, the latest arrangement with Deutsche Bank confirms what has been said – that the process of borrowing under unfavorable conditions continues.
The price of the arrangement, says Kostic, is, of course, unfavorable if you take into account that at the beginning of February, the Euribor exceeded 3% for the first time in almost a decade and a half, and that further growth is expected by the middle of the year, and only then will it stabilize, if at all, which will primarily depend on the results of anti-inflationary measures.
“Therefore, if the measures to suppress inflation do not produce results, we should expect a further increase in the reference interest rates of the central banks. Whatever the case, the conditions are very unfavorable”, says Kostic.
Such a situation, of course, he adds, is dictated by disproportionately high public spending, and what further complicates the matter, is the probable illiquidity of the budget caused by the mismatch in the pace of inflow and outflow of funds.
