Statement of the Deputy Prime Minister and Finance Minister, Mr. Igor Lukšić, PhD., on the occasion of adopting the Final Account of the Budget of Montenegro for 2009, and the Information on negotiations results between the representatives of the Ministry

“…Negotiations came to an end, thus conditions were created that the Government issues the approval to the Ministry of Finance to sign the guarantee for the credit arrangement. The credit user is KAP, and the half of the credit will be use to settle liabilities to suppliers, primarily, for the payment of electricity to EPCG. Second half of the credit will be invested in the restructuring of this company. In order to complete the deal, i.e. to sign the settlement agreement , it is necessary to complete negotiations on restructuring of outstanding liabilities of KAP. There isn’t any dilemma that this issue will require more discussion, because problem are complex than those related to the working capital status and the increase in production. GDP amounted to three billion Euros, meaning that it fell nominally by 2,68 %, and realistically by 5,3 %. Inflation amounted to 5%, and the public debt 38%. Consolidated consumption with municipal expenditures was 1,524 billion Euros which is 50,75% of GDP. Current public consumption was consolidated to 42,4 %, influencing the halt of the economy fall. Last year’s budgetary revenues amounted to 1,57 billion or slightly below the plan. The Proposal of the Final Account after issued opinion of the Supreme Audit Institution will be delivered to the Parliament for adoption. Receipts were generated higher than planned, thanks to the sale of the part of property, particularly EPCG shares. Consolidated current revenues, with the receipts form the payment of issues budgetary loans, amounted to 1,169 billion Euros, or 93% of the plan. In last year, budgetary expenditures amounted at around 1,45 billion Euros or 50 million Euros less than planned. Consolidated budgetary expenditures amounted to 1,3 billion Euros, current budgetary and state – owned funds consumption is 38,7% of GDP, while the estimated deficit is 4,4 % including a part of outstanding liabilities lodged last year. Deposits at the end of last year amounted to 183 million Euros and 34.477,69 ounces of gold...”