The Montenegrin government has signed a EUR250m loan arrangement with the World Bank in a bid to ensure macroeconomic stability and improve the living standards, the Finance Ministry said in a Friday statement. The loan will have a repayment period of 12 years and a four-year grace period. The loan will have an annual interest rate of six-month EURIBOR + 2.95%. The agreement was signed by Finance Minister Darko Radunovic and World Bank country manager for Montenegro and Bosnia-Herzegovina Emanuel Salinas.
Radunovic said that signing of the loan affirms the credibility of the government’s fiscal consolidation measures. He pledged to continue reforms to meet the criteria for securing another World Bank loan arrangement to further strengthen the state budget. Salinas called on the government to focus on job creation and maintaining a favorable economic environment to achieve inclusive growth.