Premature buy-off of the foreign currency savings bonds OB16 and OB17

According to provisions of the Law on settling obligations and claims based on foreign debt and citizens foreign currency savings (Official Gazette RCG, no. 55/03 and 11/04), the Government of Montenegro had in 2004 issued bonds with total amount of 137,237,341.04 EUR, with due date from 2004 to 2017, out of which, according to law solution, 40,735,016.67 EUR was settled. According to the amortization plan, the bonds due in 2016 (OB16) amount 10,223,735.00 EUR, and in 2017 (OB17) amount 11,543,193.00 EUR. According to the Law on payment of citizens foreign currency savings invested with the authorized bank with headquarters outside Republic of Montenegro (Official Gazette RCG, no. 81/06), and in line with the valid documentation, a total obligation for reimbursement of foreign currency savings invested with authorized banks with headquarters outside Montenegro was established in the amount of 28,075,127.70 EUR. By this moment, the total amount of 1,420,388.01 EUR was paid (first payment of 380 EUR per investor), therefore from the remaining amount of 26,654,739.69 EUR the bonds shall be issued by the 1 July 2008, when the second payment of 530.00 EUR per account shall start.
The Government of Montenegro had, under conditions of Budget high liquidity, and for the purpose of protection of interest of owners of the citizens foreign currency savings bonds in line with mentioned laws, as suggested by the Ministry of Finance, legislated the Decision of buy-off of citizens foreign currency savings bonds due in 2016 and 2017 (Official Gazette CG, no. 22/08). Implementation of this decision shall influence decrease of domestic debt, which had, on 31 December 2007, amounted 275.10 million EUR. In line with the Article 3 of the Decision of buy-off of citizens foreign currency savings bonds due in 2016 and 2017, the Ministry of Finance of Montenegro had, on 22 April 2008, selected the authorized participant in the stocks and bonds market by direct collection of bids (shopping method). According to the Journal number 06-1049 dated 24 April 2008, from the public opening of closed bids on costs of implementation of premature buy-off of bonds OB16 and OB17, the Ministry of Finance had, from the pool of fifteen bids delivered by stock brokers, selected the broker company Basileus broker a.d. Podgorica, offering the most favorable conditions for buy-off of the citizens foreign currency savings bonds in the name and in favor of the Government of Montenegro.