Interview of the Minister of Finance, Milorad Katnić, for Reuters

LJUBLJANA, June 24 (Reuters) - Montenegro plans to issue a Eurobond in 2012 worth about 200 million euros ($283 million), Finance Minister Milorad Katnic told Reuters in an interview on Friday.

"We want to bring down the cost of borrowing further. That means we will probably go to the international market again next year, depending upon market conditions," Katnic said, speaking on the sidelines of an economic conference in Slovenia.

Montenegro last tapped international markets in April with a five-year bond totalling 180 million euros.

The country plans to reduce its government debt to 35 percent of GDP by 2015 from some 45.5 percent this year, Katnic said, adding that this ratio is due to fall 2 percentage points in 2012 when GDP is seen expanding 3.5 percent after 2.5 percent growth in 2011.

According to Katnic, Montenegro's budget deficit should be reduced to 1 percent of GDP in 2012 from some 3.2 percent this year, partly on account of curbing pensions and public sector wages.

Katnic also said he believed bad loans in the country reached their peak in the second quarter of the year when they stood at about 25 percent of total outstanding loans. He added that this should fall in future due to loan restructuring.

Reporting by Marja Novak