Montenegro will pay KAP’s debt to Deutsche Bank, as guarantees are activated

Podgorica, Montenegro (3 April 2012) – Deutsche Bank sent to the Government of Montenegro later yesterday evening the formal notification on the activation of guarantees given for the loan granted to the Aluminium Plant Podgorica (KAP).

Following KAP’s management refusal to sign the documents related to the arrangement that envisaged the Government’s take-over of the debt, Deutsche Bank has initiated last week the procedures to accelerate the collection of the entire loan from KAP. Since KAP has not discharged this obligation in the requested three-day period, the conditions have been met for the activation of the guarantee.

The Government of Montenegro, as guarantor, will discharge the obligation, which means that it will pay the debt on the basis of the activated guarantee by the end of next week. The full obligation amounts to EUR 23,4 million, 22 million of which is the principal amount, and 1,4 million is interest and other loan expenses.
Funds will be provided from the Budget.