Montenegro may sign loan arrangement with World Bank by end-2019

The Montenegrin government may sign another loan arrangement with the World Bank in Q4’19 or Q1’20, Finance Minister Darko Radunovic said after meeting with World Bank and IMF officials. He noted that the government seeks financing and World Bank guarantees related to development projects. Radunovic said that budget revenues increased by 18.5% y/y in Jan-Feb and the structural reforms continued. Central bank (CBCG) Governor Radoje Zugic also attended the meeting and said that the main priorities of the CBCG in the near term are improving bank supervision, new measures to prevent money laundering and modernization of the payment system.

The representatives of the IFIs said they expected the Montenegrin economy to grow by weaker pace this year compared to 2018 but noted that macroeconomic fundamentals are still satisfactory. The government signed last year a EUR250m loan arrangement with the World Bank in a bid to ensure macroeconomic stability and improve the living standards. The loan has a repayment period of 12 years and a four-year grace period with an annual interest rate of six-month EURIBOR + 2.95%.

Share this post