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Montenegro inks $85m loan with the World Bank
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Montenegro inks $85m loan with the World Bank
Published on: Sep 27, 2011 • 6:54 PM Author: PR Bureau
Washington, USA (27 September 2011) – Finance Minister Milorad Katnić and World Bank (WB) Director for South-East Europe Jane Armitage signed a Development Policy Loan (DPL) worth $85 million earlier today in Washington.
The Finance Ministry notes that the loan has been given under very favourable conditions, with a 20-year maturity and a five-year grace period. The interest rate is tied to a six-month EURIBOR and a 0, 80% margin, which currently means 2, 5% annually. The funds will be used to support the 2012 Budget.,
The loan conditions put forth to Montenegro include, according to the Finance Ministry, securing a satisfactory level of macro-economic stability and stabilisation in the areas of financial and banking systems. The Ministry reports that the loan testifies to Montenegro’s commitment to a series of reforms aimed at making the fiscal and financial systems even more stable and resilient to coming challenges. Minister Katnić underlined that “the World Bank loan means more than money for Montenegro; it confirms that we have been conducting a credible and responsible policy.”
World Bank granted the DPL to Montenegro because it recognised the progress Montenegro is experiencing in the areas of fiscal consolidation, banking sector stability and implementation of structural reforms, Ms Armitage said, underlining that it is necessary to ensure the long-term stability of Montenegro’s finance system.
The Finance Ministry reminds that the DPL negotiation process began in 2009 and that 2010 and 2011 saw intensive discussions between the two sides culminating with the signing of the loan agreement.
The Finance Ministry notes that the loan has been given under very favourable conditions, with a 20-year maturity and a five-year grace period. The interest rate is tied to a six-month EURIBOR and a 0, 80% margin, which currently means 2, 5% annually. The funds will be used to support the 2012 Budget.,
The loan conditions put forth to Montenegro include, according to the Finance Ministry, securing a satisfactory level of macro-economic stability and stabilisation in the areas of financial and banking systems. The Ministry reports that the loan testifies to Montenegro’s commitment to a series of reforms aimed at making the fiscal and financial systems even more stable and resilient to coming challenges. Minister Katnić underlined that “the World Bank loan means more than money for Montenegro; it confirms that we have been conducting a credible and responsible policy.”
World Bank granted the DPL to Montenegro because it recognised the progress Montenegro is experiencing in the areas of fiscal consolidation, banking sector stability and implementation of structural reforms, Ms Armitage said, underlining that it is necessary to ensure the long-term stability of Montenegro’s finance system.
The Finance Ministry reminds that the DPL negotiation process began in 2009 and that 2010 and 2011 saw intensive discussions between the two sides culminating with the signing of the loan agreement.
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