NewsThe Government is paying the January installment to Exim Bank instead of...

The Government is paying the January installment to Exim Bank instead of Montenegro Shipping Company

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The Government will pay the January installment of the Exim Bank loan instead of Montenegro Shipping Company because, despite its positive performance, the company is unable to do so, as announced by the Government.

After the session, it was announced that the Government had approved the settlement of obligations to Exim China Bank under the state guarantee for the loan agreement concluded between Montenegro Shipping Company Kotor and Exim China Bank.

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“Considering that Montenegro Shipping Company, despite operating positively for nine months, is still unable to provide the participation for the repayment of the January loan installment due to current obligations, the Government has accepted the request of Exim China Bank for the settlement of matured obligations under the issued guarantee, amounting to USD 2,478,810, increased by additional interest costs to be calculated from the maturity date until the payment date, in the euro equivalent on the day of payment,” said the Government.

It is stated that during the discussion, it was emphasized that the Government found itself in a position to address one of the inherited problems that arose as a result of poor decisions in the past.

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“The Government is obliged to settle the obligation to the borrower as a guarantor under the loan arrangement, considering that the obligation is based on the guarantee agreement and that, in order to maintain the reputation and trust that Montenegro has with international creditors, the obligation must be fulfilled without delay,” the statement adds.

The Government noted that, according to previous practice, the Ministry of Finance will demand that the company reimburse the costs incurred by the state for settling obligations related to the guarantee.

“Also, the Ministry of Finance will inform the Protector of Property and Legal Interests and provide the necessary documentation to take all necessary actions to protect the property legal interests of the state,” the statement said.

At the session, a decision was made on the detailed criteria for using the funds of the current and permanent budget reserves.

“In accordance with the Budget Law and Fiscal Responsibility, which stipulates that during the fiscal year, funds from the current reserve should be used for unplanned and inadequately planned expenditures, and that funds from the permanent reserve should be used for urgent and unforeseen expenditures, the decision prescribes detailed definitions of criteria, procedures, and hierarchy of authorities regarding the use of funds from the current and permanent budget reserves,” the statement said.

The decision also establishes rules and limitations for securing missing funds for financing the regular activities of consumer units and for assisting legal and natural persons, as well as defining the role of the Commission for the allocation of part of the budget reserve funds in accordance with the Law.

The Government adopted information on the proposal for appointing a National Authorizing Officer (NAO) responsible for financial management of IPA programs and efficient functioning of internal control systems in Montenegro.

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