Statement of the Minister of Finance, Igor Lukšić, after the session of the Government of Montenegro in view of the demand of Prva Banka for a short-term borrowing for overcoming the liquidity problem

The loan with 2.5 percent interest for three months with the possibility of extending for the period of no longer than one year has been approved to Prva Banka under specific conditions. The Central Bank first assessed that it was necessary to meet the request of Prva Banka and provided proposals that the Government considered prior to its definite response to the request. Twelve months is the longest period for which such a loan may be approved as envisaged by the Law on Banking Sector Safeguards. Soon, the agreement on the pledge of the shares of Prva Banka 93.5 percent will be signed. The Central Bank will designate an authorized person to supervise, control and approve the final use of the funds that the Government approved to this bank. If any of the conditions under which the loan has been approved are not met, the agreement will not be extended, and the bank will have to repay the money immediately. If it is not able to do so, the pledge will be realized. In other words, Prva Banka will be nationalized