Signing the Agreement between the Government of Montenegro and the Government of Switzerland within the Paris Club of Creditors

Agreement between the Government of Montenegro and the Government of Swiss Confederation takes over the existing bilateral Agreement between Governments of Swiss Confederation and Federal Republic of Yugoslavia, signed on October 3, 2002, where the main provisions remain in force for Montenegro.

The Agreement prescribes that debt of Montenegro to the Swiss Confederation consists of debt of former SFRJ to Switzerland, which was used or warranted by the users located on the territory of Montenegro. Total amount of Montenegro debt to Swiss Confederation is 2.4 million Swiss Franks (CHF). Of the total amount of debt, more than 98% was allocated and the users were companies from Montenegro (KAP, Radoje Dakić, Primorka Bar, Vukman Krušćić Mojkovac), and the non-allocated part of debt, after sign-off of 66%, had fallen onto Montenegro as a special type of non-allocated debt or exchange, according to the Law on appendixes to the Law on Credit Relations with foreign creditors of former SFRJ (Article 49c). The debt to Switzerland is to be paid until 2024, and the interest rate is six month CHF LIBOR increased for 0.5% fee. Agreement with Swiss Confederation is the fifth agreement signed within the Paris club of creditors since Montenegro acquired its independence.