VTB and OTP banks activate guarantees given for loans granted to Aluminum Plant Podgorica

Podgorica, Montenegro (2 July 2013) -- VTB and OTP banks sent to the Government of Montenegro the formal notification on the activation of guarantees given for the loans granted to the Aluminum Plant Podgorica (KAP).

In order to fulfill these obligations, the Government is negotiating the conclusion of loan agreements, whose execution was scheduled by the budget review, which is awaiting parliamentary approval, the Finance Ministry’s press release reads.

Liabilities under the loan agreements would be settled in the medium term, with a grace period, thus keeping the budgetary stability and providing more equitable fiscal burden in the long run, the press release noted.

The Ministry of Finance pointed out to the fact that the non-recognition of the obligations undertaken by the states would have unpredictable consequences.