Government to grant state guarantees on credit indebtedness of municipalities of Cetinje, Bijelo Polje and Kolašin

Podgorica, Montenegro (29 October 2015) -- At the session held earlier today, the Government decided to grant state guarantees on credit indebtedness of the municipalities of Cetinje, Bijelo Polje and Kolašin in order to overcome financial difficulties and boost financial consolidation of the local governments.

According to the amendments to the Law on the Budget for 2015, the guarantees are issued for credit indebtedness of the aforementioned municipalities, namely EUR 7 million for Cetinje, EUR 8, 94 million for Bijelo Polje and EUR 5, 7 million for Kolašin. Based on earlier agreements with the government on regulating relations between the Government and municipalities regarding the credit indebtedness and implementing remedial plans, the municipalities have the opportunity to get favourable loan terms enabling them to pay off the debts and reduce the size of the local administrations, the Cabinet emphasised.