Reaction to the Statement of the Aluminum Plant (KAP) Union, in relation to the KAP’s credit indebtedness

Pursuant to the Budget for 2010, it is planned that the Government of Montenegro issues a guarantee to the KAP in the amount of total 85 million Euros, out of which 22 million Euro represent new borrowing for the purpose of maintaining production in the KAP and 63 million Euros for the rescheduling of loan liabilities of KAP from the previous period. The Government of Montenegro is not providing the loan, but it is ready to issue the guarantee for the loan indebtedness to be provided by the management of the KAP. The Government of Montenegro, considering the general economic situation, as well as the situation of KAP being the result of the economic crisis and the crisis in the aluminum industry, has undertaken efforts to find the adequate credit partner. Negotiations between KAP and interested lender are in process, regarding the credit arrangement of 22 million Euros, for which the Government will issue guarantee. The Montenegrin public will be informed on the results of negotiations in a timely manner. Upon completion of the Settlement Agreement, being one of the preconditions for the provision of landing by the KAP, the KAP’s General Assembly Meeting will be organized and the Government will appoint its thereof.