Agreement between the Government of Montenegro and the Government of United States within the Paris Creditors Club

According to the proposals given by the Paris Creditors Club Secretariat and the Agreement between the Republic of Serbia and Montenegro on defining membership in the international financing organizations and delineation of financial rights and obligations dated 10 July 2006, the Ministry of Finance is in the process of signing bilateral agreements with the Paris Club creditor states, for the purpose of formal and legal delineation of obligations between Montenegro and Serbia. The agreement with the United States is the fourth bilateral Agreement signed by Montenegro with the Paris Club members since the Declaration of independence, after the agreements with Italy, Austria and Germany. The bilateral agreement between the Government of US and Government of Montenegro takes over the existing bilateral agreement between the Governments of United States and the Republic Yugoslavia signed on 3 October 2002 and provisions of the new Agreement alters the existing one only in defined provisions, while the other provisions of the 2002 Agreement are still in force for Montenegro. This Agreement defines that Montenegro confirms its obligations for debts or warranties of former SCG from the 2002 Agreement, if the loan user is situated on the territory of Montenegro. For non-located obligations, the percentage of 5.88% of total non-allocated debt shall be applied, as defined in the Agreement between Montenegro and Serbia from 10 July 2006. The debt of Montenegro to US includes the debt to the Export Import Bank of US (Ex-Im) of USD 18,514,000 and USAID USD 321,000. The debt amount with the capitalized interest is USD 3,273,000