Montenegro will borrow EUR190m through domestic bonds

The Montenegrin government plans to borrow EUR190m in 2019 through the issuance of bonds on the domestic market, the State Treasury’s director-general Dragan Darmanovic told the state TV. He noted that the government will issue EUR140m in five-year bonds with a 3% interest rate and EUR50m in seven-year bonds with 3.5% interest rate. The nominal value of the notes will be EUR1,000, which is lower compared to previous years, when it stood at EUR10,000. Darmanovic noted that the lower nominal value of the papers will make them more attractive to citizens and encourage their participation in the issue. He added that the purpose of the bonds is to secure funds for this year’s budget and help the development of the domestic capital market.

The Finance Ministry earlier said that the government does not plan to issue debt on the international markets in 2019. It noted that the principal of the bonds will be repaid at the maturity date, while the interest payments will be made on annual or semi-annual basis. It also said that foreign and domestic firms and individuals will be able to buy into the bonds.

Share this post