The Ministry of Finance has announced its intention to borrow 200 million euros from domestic banks through the issuance of bonds and a treasury bill auction by the end of this year. The liquidity of banks is becoming increasingly important in this context. The Central Bank of Montenegro (CBCG) has responded that it is actively monitoring the liquidity of banks, conducting detailed analyses to ensure the stability of the financial sector during the process of issuing government bonds.
Finance Minister Novica Vuković previously stated that they had negotiated with all domestic banks, and nine of them are interested in the bonds, i.e., long-term securities.
According to the Ministry of Finance data, there is a preliminary agreement to borrow 110 million euros from domestic banks in this way, with interest rates ranging from 6.4% to 6.5% over three to five years. The remaining funds are planned to be raised through treasury bill auctions, i.e., short-term securities. Interest rates for treasury bills are around three percent, as they do not include the six-month EURIBOR, which currently stands at 4.5%, unlike bonds.
The CBCG stated that they apply a set of regulatory indicators and reporting forms regularly submitted by banks, enabling a thorough monitoring of liquidity on a daily, weekly, monthly, and quarterly basis. The decision on liquidity risk management prescribes regulatory liquidity indicators, laying the foundation for maintaining stable bank liquidity.
