The Montenegrin government owed EUR516.5m to the Chinese Exim Bank for the construction of the first section of the Bar-Boljare highway at end-2018, according to information from the Finance Ministry provided to daily Dnevne Novine. The ministry is reportedly negotiating models for closing a hedging arrangement for currency risk reduction to lower the costs and make the conditions of the loan more favorable. The ministry also said that the government paid EUR431.3m from the loan to the highway developer China Road and Bridge Corporation (CRBC) by end-2018. The total amount of the Chinese Exim Bank loan is EUR688.2m and accounts for 85% of the total amount required for the construction of the highway section (EUR809.6m). The remaining 15% of the funding will come from the state budget. The repayment period of the loan is 20 years with a six-year grace period and an annual interest rate of 2%.