The Government has approved the Ministry of Finance to begin negotiations with five financial institutions ( Deutsche Bank, Erste Bank , Citibank , Morgan Stanley and JP Morgan ) to borrow another 147 million for a period of three to five years.
It is necessary to cover the budgetary commitments by the end of the year , and so It can still borrow according to what was approved by Parliament in this year's budget .
The Ministry of Finance due to the activation of guarantees for loans of the KAP in amount of 102, 5 million euros given to the Russian VTB bank and Hungary's OTP and a recent borrowing to cover the loan of 113.5 million plus interest will not be able to issue Eurobonds , but the new loans has to be made to provide money to save the state budget .
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The government has not done a new draft of revised budget for this year, which seeks to further borrow 102 million due to the activation of guarantees for loans of KAP, the Government to urgently negotiate with Erste Bank Podgorica to provide a loan of 16 million euros. The money from the Erste Bank will be used to pay off a debt of around 15.5 million, repayments due on 15 September.
This applies to foreign debt and interest on the bonds. Over the coming months the the interest repayment is of about 31 million . Of these, about 5.5 million relates to domestic responsibilities, and about 25.5 million on international.
It was explained that the loan is urgently needed to provide liquidity. “Erste Bank may approve as soon as possible the means to regulate state obligations to domestic and foreign creditors in September , which is now of great importance.” The Ministry claimed that “the conditions offered by Erste Bank are acceptable .”
