Minister Radunović: Signing of Facility Agreement confirms credibility of fiscal policy measures of Government of Montenegro

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    Minister of Finance Darko Radunović and World Bank Country Manager for Montenegro Emanuel Salinas signed today a Facility Agreement worth EUR 250 million between Montenegro as a borrower, the International Bank for Reconstruction and Development (IBRD) as a guarantor and Credit Suisse, OTP Group, Montenegrin Commercial Bank AD Podgorica and Societe Generale as lenders… Minister Radunović: Signing of Facility Agreement confirms credibility of fiscal policy measures of Government of Montenegro

    PR Service

    Minister of Finance Darko Radunović and World Bank Country Manager for Montenegro Emanuel Salinas signed today a Facility Agreement worth EUR 250 million between Montenegro as a borrower, the International Bank for Reconstruction and Development (IBRD) as a guarantor and Credit Suisse, OTP Group, Montenegrin Commercial Bank AD Podgorica and Societe Generale as lenders.

    The aforementioned arrangement is supported by the World Bank Policy-Based Guarantee (PBG1), and includes very favourable loan terms: 12-year repayment period, 4-year grace period and 6-month Euribor + margin of 6.95%.

    Thanks to the partners from the World Bank, not only on the financial but also in the continuous expert support to our country, Minister Radunović emphasised that today’s signing of the Agreement is a confirmation of the credibility of the fiscal policy measures of the Government of Montenegro aimed at strengthening macroeconomic stability and improving the living standard of citizens. The Minister added that in the next period, the Government will strive to meet the criteria for securing another package of World Bank support (PBG2) through the continuation of reforms, which would further strengthen the central budget.

    “We welcome the commitment of the Government and the activities that you are taking to bring Montenegro back to a sustainable macro-fiscal path. We firmly believe that this is a prerequisite for the further development of the economy and the release of the private sector potential to create new and better jobs,” Salinas said.

    He further stated that growth and job creation are the most important priorities for Montenegro’s further progress, and that sustainable and inclusive growth can only be achieved in a sustainable economic environment and a well-functioning financial sector.

    Source: Government of Montenegro