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DPM Simović: Today's decision crowns successfully completed first phase of difficult job in stabilizing public finances

DPM Simović: Today
Published date 07.03.2018 18:30 | Author PR Service

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Deputy Prime Minister for Economic Policy and Financial System Milutin Simović assessed that today's decisions are creating conditions for a favourable debt repayment.

We basically do what every good host would do: we are changing expensive loans with favourable loans. It is important to say that we can do this thanks to the improvement of Montenegro's position on international competitiveness list and international financial markets, thanks to the successful economic policy and successful implementation of fiscal consolidation measures, the Deputy Prime Minister said.

DPM Simović added that today's decision crowns the successfully completed first phase of a difficult job in stabilizing public finances which started just over a year ago.

This is a decision that will have long-term positive effects, as we will refinance the significant loans maturing in 2020 and 2021 during longer period and thus make significant savings in our budget. In this way, we will achieve significant savings, which will further finance education, health, infrastructure, culture, sports and social benefits. We took advantage of this favourable opportunity to show the responsibility in a number of other fields: We allocated the money for the purchase of shares of Montenegrin Electric Enterprise (EPCG), in accordance with the contract. We are returning ownership of this important company under the state's wing. At the same time, we are holding the door open to a new strategic partner who will, together with us, invest in the development of a number of projects in the energy sector. Also, this decision allocates significant funds for the new clinics within the Clinical Centre of Montenegro. ... And finally, with this decision we create conditions for improved Montenegro's availability, which will bring more tourists and bring more money to both the state and citizens, the Deputy Prime Minister said.

DPM Simović concluded that a year ago, when we entered the fiscal consolidation programme, we were the subject of many critics and that the criticisms were of a populistic and political character.

Today, the time shows that we were right – we who were working, not those who criticized, Deputy Prime Minister Simović said.

DPM Simović's statement in Montenegrin:

Minister of Finance Darko Radunović assessed that the Cabinet today made decisions that would result in more favourable refinancing of a part of public debt for a period of 4 years.

We have managed a successful policy, which means we have collected more revenue and we have implemented the other fiscal consolidation measures we have set out in the Government's Fiscal Strategy by 2020. The result is the further strengthening of macroeconomic stability and economic growth of Montenegro as well as the positive relation of the foreign financial markets towards Montenegro, the Minister of Finance said.

Minister Radunović added that the interest we pay on the previously issued Eurobonds is close to 5%, and that we already have the opportunity, thanks to the economic policy we run, to refinance the debt on Eurobonds at around 3%.

Minister Radunović's statement: