Montenegro has no plan to sell state property to ease debt

Montenegro has no plan to sell state property to ease debt

© Reuters. FILE PHOTO: Workers fit a manhole on the Bar-Boljare section of a new highway in Montenegro financed with a large Chinese loan, May 27, 2021. REUTERS/Stevo Vasiljevic/File Photo

BELGRADE (Reuters) -Montenegro has denied it has plans to sell state property to ease its debt burden, a local newspaper said on Sunday, after a Reuters report quoted senior officials as saying the tiny Balkan country was preparing the way for asset sales.

The Reuters report on Friday also quoted a senior European Union official as saying Montenegro was looking to raise cheap EU credit in a plan – to be spearheaded by state lenders from France, Germany and Italy – to reduce its financial reliance on Chinese debt.

In 2014, Montenegro, with a population of 628,000 people, borrowed $944 million from China to fund a stretch of a highway to the border with its neighbour Serbia.

The loan sent total government debt skyrocketing and it now equals 103% of economic output.

The Dan daily newspaper, quoting an unnamed finance ministry official, said on Sunday there are no plans for selling state property for the repayment of the Chinese debt, “nor is there any need for that.”

“This government has ensured that Montenegro has the money to finance all obligations, including those to Chinese creditors,” Dan quoted the official as saying.

“We are open for cooperation with our European partners, to reach the most favorable … conditions for financing of strategic projects … such as the highway,” the official added, according to the article.

Finance Minister Milojko Spajic told Reuters in a recent interview that the government wants to make a strategic review of assets, that could ultimately lead to regular sales. He also stressed that Montenegro’s state finances were stable.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: