Signed Loan Agreement between the Deutsche Bank AG London and Aluminum Plant Podgorica and Guarantee Agreement between the Government of Montenegro and the Deutsche Bank

The Ministry of Finance, on behalf of the Government of Montenegro, has signed a Loan Agreement between the Deutsche Bank AG London and the Aluminum Plant Podgorica, in the amount of 22.0 million Euros and the Guarantee Agreement between the Government of Montenegro - Ministry of Finance and the Deutsche Bank. The issuance of the loan guarantee for the Aluminum Plant Podgorica in the amount of 22.0 million Euros, is envisaged by the Law on Budget for 2010, within the support to Montenegrin economy. The loan period is 5 years, maturing in two years after the disbursing of funds, and it will be paid - off in 7 semi-annual installments. Half of the loan amount will be directed to investments aimed at increasing production, while the remaining part will be used for the repayment of outstanding liabilities to the EPCG. The conclusion of this credit arrangement represents a prerequisite for the effectiveness of the Settlement Agreement. Following the entry into force of this Agreement, the State will enter the ownership structure of the KAP, providing for the arrangement.