NewsMontenegro, Good summer tourist season could reduce debt

Montenegro, Good summer tourist season could reduce debt

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This year, Montenegro should take on less debt than foreseen in this year’s budget, because good results are expected from the summer tourist season, announced Prime Minister Dritan Abazović.

– We had that first announcement by the Minister of Finance when the budget was being adopted. We think it will be on a smaller level, because we have made an ambitious plan for the whole year, and especially for the summer season. We believe that this year we can go for a record, that is our ambition and we want to exceed 2019 in terms of income from tourism – Abazović said in response to questions from journalists in Villa Gorica.

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According to him, the higher the income, the higher the collection of value added tax (VAT) and other taxes will be, and therefore the need for borrowing will be lower.

– I would not talk about the figures in which domain it will be. It is most important for the citizens to understand that it is crucial for Montenegro to grow the gross domestic product (GDP), because we will certainly in a medium-term period constantly be in a situation where we have to enter into some credit arrangements – said Abazović.

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He explained that this is not only a characteristic of Montenegro, but also of many other countries, including the large countries of the European Union (EU).

– The most important thing is that economic assets in Montenegro work – said Abazović.

Speaking about the credit arrangement with Deutsche Bank, which provided EUR 100 million for financing budget obligations in the current year, Abazović assessed that this financial institution is one of the most credible.
– We could have followed the logic of borrowing in other places as well, maybe that will be the case in the future, but when you compare it with the region, the region has decided on some distant destinations. I am not saying that it is bad or good, but this arrangement is in line with the interest rates that are currently current in the world. Currently, money is expensive, because of all the events related to the situation in Ukraine, because we have uncertainty that increases interest rates – said Abazović.

He also said that the formal procedures for the registration of the Prizna ferry, which recently arrived in Montenegro from Croatia, have been completed.

– When it comes to the pier, this is a slightly bigger ferry. What is the problem today to regulate the pier with prefabricated pontoons – said Abazović.

He said that we cannot have a pier like 50 years ago.

– All works can be carried out, there is no need to waste words about it. The most important thing is to establish a ferry line. I said that it will take a certain period for the state to take over and get the fleet, after that no one will even talk about docks and ferries – said Abazović.

Speaking about the name of the Prizna ferry that arrived in Montenegro from Croatia, he said that the ferry was too old to be called May 21.

– That’s what an airport or a large institution should be called. I’m not saying that the ferry is insignificant, it’s just one of several that Montenegro will have, while August 30 symbolizes something else – added Abazović.

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