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Report on the State Debt of Montenegro as of 30 June 2011

By Heather Price,2015-02-09 18:48
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Report on the State Debt of Montenegro as of 30 June 2011

    1. Report on the State Debt of Montenegro as of 30 June 2011

    As of 30 June 2011, the State debt of Montenegro amounts to EUR 1.433,7 million or 44,9% of the Gross Domestic Product (GDP). The internal debt amounts to EUR 364,1 million or 11, 4% of GDP, while the external debt amounts to EUR 1.069, 6 million or 33,7% of GDP. As of 30 June 2011, the deposits of the Ministry of Finance amount to EUR 181,2 million and 38.477 ounces of gold, thus the net state debt amounts of around 39,2% of GDP.

External Debt Trends during the first six months of 2011

    During the first six months of 2011, the external debt increased by EUR 157,2 million in comparison to the end of 2010. The amount of the external debt increased due to Eurobonds issue in the amount of EUR 180,0 million and due to disbursed loan funds for the IBRD loan for the Project “Health” in the amount of about EUR 0,3 million, “LAMP” Project in

    the amount of EUR 0,3 million, “Energy Efficiency” project in the amount of EUR 0,3 million,

    “MIDAS” Project in the amount of EUR 0,3 million, IDA loan in the amount of about 1,2 million, EIB loan for the Project “Roads and Bridges” in the amount of EEUR 4,0million,

    commodity loan of the Government of Spain for the Recycling Center construction in Podgorica in the amount of EUR 0,5 million, KfW loan for the Water Supply Project (phase III and IV) in the total amount of about EUR 1,1 million, as well as the Hungarian Exim Bank loan for financing the school construction Project in Bar in the amount of EUR 0,7 million. In addition to the aforementioned, loan funds of the European Council Bank were disbursed for the Project “1000+ Apartments” in the amount of EUR 10,0 million. The stock of foreign

    declined based on the timely repayment of the principal in the amount of about EUR 23,1 million, as well as based on the differences in the currency exchange rates.

    The stock of external does not include the obligations in respect of unresolved debt - related issues to Libya, Kuwait, Czech and Slovakia and UBS Bank in respect of bonds issued within the London Club. Montenegro inherited this debt towards the governments of these four countries based on the division of non-allocated debt (5.88% out of 38% for Serbia and Montenegro) and in accordance with the Agreement on Succession Issues from thVienna 29 June 2001, it has been resolved through positions agreed within the Committee for Division of Financial Assets and Liabilities of the former FRY. As to API bonds, the negotiations with the UBS Bank representatives took place, for the purpose of finding the options for bilateral resolution of this issue. The total amount of the obligation in respect of unresolved debt issues will most likely equal to about 1% GDP and it is included in the projections of debt trend for the period 2011-2013.

    The aforementioned data on the stock of foreign debt implies the amounts of disbursed loan funds in respect of individual loans.

Table 1. Data on the stock of foreign debt and non - disbursed loan funds amount

    Foreign Debt

    Non

    Stock of disbursed

    Creditor Debt funds

    International Bank for Reconstruction and

    Development (IBRD) 173,8 32,3

    International Financial Organization (IFC) 4,9

    Member states of Paris Club of Creditors 108,6

    International Development Association 58,2 5,7

    (IDA)

    European Investment Bank (EIB) 74,7 47,5

    European Bank for Reconstruction and

    Development (EBRD) 19,3 14,4

    European Council Development bank 10,2 15,0

    European Community 5,5

    Credit Bank for Reconstruction Germany

    (KFW) 11,4 48,8

    Austrian loan 10,1

    Hungarian loan 13,6 0,5

    Polish loan 10,8 0,1

    Societe Generale - Education IT 0,7

    French loan 8,5

    EUROFIMA debt of Railway 28,7

    Czech EXIM debt of Railway 32,5

    Steiermarkische Bank und Sparkassen AG 22,0

    Erste Bank 22,5

    Credit Suisse Bank 67,7

    Spanish loan for landfill construction 5,0

    Exim Bank Hungary 0,9 3,2

    EUROBOND 380,0

    TOTAL: 1.069,6 167,5

    Pursuant to the aforementioned, the total amount of available and non disbursed funds is of around EUR 167,5 million. The aforementioned amount comprises IBRD loan

    funds signed in the first half of 2011, for financing the “Hot Spot” Project in the amount of

    EUR 0,75.

    Foreign guarantees of Montenegro amount to EUR 316,7 million or 10.0% of GDP, or

    21,7 % of the state debt.

Table 2. Issued Foreign Guarantees

    Stock of

    Disbursed State Debt

    Yeaas of 30 as of 30 Creditor Loan Borrower r Amount June 2011 June 2011

    European

    Roads 20024.000.000,024.000.000,0EIB Project Monteput 4 24.000.000 0 0

    Electro -

    Energy

    System

    Reconstructi200

    EIB on EPCG 2 11.000.000 8.023.090,00 7.311.505,79

    Airports

    ModernizatioPC Airports 20011.000.000,010.600.000,0EIB n MNE 4 12.000.000 0 0

    Small and

    Medium

    sized

    Enterprises Commercia20071.107.000,070.961.354,2EIB through l Banks 9 91.000.000 0 7

    Commercial

    Banks

    Railways

    Infrastructur

    e Railway

    ModernizatioInfrastructu201

    EIB n re of MNE 0 7.000.000 0,00 0,00

    Airports

    ModernizatioPC Airports 20010.235.127,0EBRD n MNE 3 11.000.000 0 6.393.215,82

    Construction

    of the

    Regional

    Water supply PC

    System Regional

    south Water

    extension, Supply 200

    EBRD phase I Company 7 8.000.000 8.000.000,00 7.666.666,67

    Construction

    of the

    Regional

    Water supply PC

    System Regional

    south Water

    extension, Supply 200

    EBRD phase II Company 8 7.000.000 7.000.000,00 6.708.333,33

    Railroad

    infrastructure PC

    Project Railways of 200

    EBRD phase III MNE 9 4.000.000 2.091.177,04