- Government of Montenegro
Ministry of Finance Announcement of the Ministry of Finance
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Announcement of the Ministry of Finance
Published on: Apr 7, 2008 • 10:11 PM Author: Naslovna strana
According to the Decision on conditions and procedure of claims buy-off using the citizens foreign currency savings bonds and former owners bonds for remuneration on confiscated property rights, on 20 March 2008, the public call was advertised to buy-off claims of Montenegro registered with the Ministry of Finance, therefore enabling all juridical and private persons to buy-off their debt under favorable conditions
According to the CDAs data, by 4 April 2008, the juridical persons had bought of total of 2,951,846 EUR: HTP "Korali"AD Bar had fully bought-off its debt of 235,481 EUR, regarding the obligations towards the London club of creditors and the International financing corporation, as well as HTP "Budvanska rivijera" which had bought-off debt of 1,946,365 EUR with the same foreign creditors. HTP "Onogošt" AD-Nikšić had, of total debt amounting 831,391 EUR, bought-off770.000 EUR or 92.6%, and considering that the public call is opened until 20 June 2008, it is expected that some other debtors will apply with a significant amount of debt. Amongst the private persons, whose debt is predominantly based on credits used for self-employment via Montenegrobanka and Employment Service, taken over by the Government on 24 December 2003, two debtors had bought-off their debts with the total amount of 45,017 EUR, and the procedure of court disputes and encumbrances against their property canceling is underway. The stated facts indicate that the financial effects for the Government are significant, since the amount of sold bonds shall decrease budget obligations to reserve the funds for taken legal obligations based on citizens foreign currency savings and restitution. Example would be that the budget for year 2008 had reserved 10 million for restitution obligations, and just in ten days the Government claims sold had the amount of almost 3 million EUR. Positive effects for debtors are also multiply significant, since the juridical persons release their balance sheets from old debts, which is of utmost importance for liquidity of these enterprises and more successful business activities with the possibility of new credit arrangements. For private persons, this activity has a special significance, since these debts are under executive court procedures and verdicts for selling collateral property. For this category of debtors, a significant interest is noted and we can expect major effects.
According to the CDAs data, by 4 April 2008, the juridical persons had bought of total of 2,951,846 EUR: HTP "Korali"AD Bar had fully bought-off its debt of 235,481 EUR, regarding the obligations towards the London club of creditors and the International financing corporation, as well as HTP "Budvanska rivijera" which had bought-off debt of 1,946,365 EUR with the same foreign creditors. HTP "Onogošt" AD-Nikšić had, of total debt amounting 831,391 EUR, bought-off770.000 EUR or 92.6%, and considering that the public call is opened until 20 June 2008, it is expected that some other debtors will apply with a significant amount of debt. Amongst the private persons, whose debt is predominantly based on credits used for self-employment via Montenegrobanka and Employment Service, taken over by the Government on 24 December 2003, two debtors had bought-off their debts with the total amount of 45,017 EUR, and the procedure of court disputes and encumbrances against their property canceling is underway. The stated facts indicate that the financial effects for the Government are significant, since the amount of sold bonds shall decrease budget obligations to reserve the funds for taken legal obligations based on citizens foreign currency savings and restitution. Example would be that the budget for year 2008 had reserved 10 million for restitution obligations, and just in ten days the Government claims sold had the amount of almost 3 million EUR. Positive effects for debtors are also multiply significant, since the juridical persons release their balance sheets from old debts, which is of utmost importance for liquidity of these enterprises and more successful business activities with the possibility of new credit arrangements. For private persons, this activity has a special significance, since these debts are under executive court procedures and verdicts for selling collateral property. For this category of debtors, a significant interest is noted and we can expect major effects.
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