Montenegro’s public debt at €4.99 billion at end of June — 58.2% of GDP

Montenegro’s total state debt at the end of June reached €4.99 billion, or 58.2 percent of Gross Domestic Product (GDP), according to the Finance Ministry’s quarterly report published on Monday. Taking deposits into account, the net state debt was €4.46 billion, respectively 51.9 percent of GDP.

State deposits at the end of the second quarter amounted to €533.4 million, including 38,450 ounces of gold worth €135.8 million. Total public debt reached €5.02 billion (58.5% of GDP), while net debt stood at €4.49 billion (52.3% of GDP).

External debt makes up the overwhelming majority — €4.76 billion, or 55.4 percent of GDP, down €44.6 million compared to the end of the first quarter. The decline came as a result of the absence of new withdrawals and the repayment of obligations worth €92.5 million, while withdrawals from previous agreements for infrastructure projects were €48 million. Domestic debt fell to €238 million (2.8% of GDP), €64.7 million less.

During the second quarter, four new loan agreements were signed: €18 million and €40 million with the World Bank (IBRD), €27 million with the European Investment Bank for equipping health institutions, as well as €100 million with the French Development Agency — none of which has yet been drawn. Almost all debt, 99.74 percent, is in euros, while 79.4 percent has a fixed interest rate. Principal repayments during the quarter reached €159.9 million and interest payments €26.9 million; state guarantees were €115.2 million, while local self-government debt was €25.7 million.

Good news came from the international rating agencies: S&P and Moody’s improved Montenegro’s credit rating outlook from “stable” to “positive,” confirming the B+, respectively Ba3, rating.

Source: Vijesti