Press Release: Negotiations with the World Bank on DPL/Development Policy Loan/ Ended

Negotiations between the representatives of the Ministry of Finance and the World Bank ended today and Montenegro has been officially approved the loan in the amount of EUR 59,1 million. WB’s Board of Directors will bring the final decision on the agreed loan arrangement at the end of August or in early September of the current year.

Funds obtained on the basis of this loan arrangement, which will be operational by the end of the year, will be used for financing the budget of MNE. The approved loan will spur the efforts of the Government of Montenegro aimed at intensifying banking and financial sectors reforms, representing the basis for a sustainable economic recovery and balanced growth driven by the private sector.

The loan has been approved based on six – month EURIBOR/Euro increased by the interest and mark – up rate by 0,80%, which currently corresponds to the interest rate of around 2,5%, and with the repayment period of 20 years, including 5 year grace period.

We are emphasizing that the aforementioned negotiations were preceded by the two year cooperation of our institutions and that Montenegro has fulfilled a set of preconditions formulated by the World Bank, primarily concerning the financial system.

PR OFFICE
MINISTRY OF FINANCE