The total national debt at the end of June amounted to EUR 4.02 billion or 62.42% of gross domestic product (GDP), according to data from the Ministry of Finance.
The data also show that the total state debt with deposits amounted to 3.75 billion, or 58.19% of GDP.
– External debt amounted to about EUR 3.6 billion, which is 56.05% of GDP, while internal debt amounted to 411.07 million, or 6.38% of GDP. On June 30th, the deposits amounted to EUR 273.22 million, including 38,447 ounces of gold, whose value on the same day was EUR 67.27 million, or 4.24% of GDP, according to the report published by the Ministry of Finance.
During the second quarter of 2023, there was a decrease in the state debt compared to the first quarter by around EUR 56 million. The Ministry of Finance states that the debt reduction was largely influenced by the repayment of government bills in the amount of EUR 39 million, as well as the regular repayment of debt obligations.
– About EUR 12.53 million was withdrawn for the realization of projects in the field of communal services, energy efficiency, improvement of road infrastructure and the like during the second quarter, while in the same quarter there were no new borrowings for budget financing needs – it was clarified.
The document states that during the second quarter, the state debt was repaid based on the principal, in the total amount of EUR 115.84 million, of which EUR 50.76 million was related to debt repayment to residents, while debt repayment to non-residents amounted to EUR 65.08 million EUR.
– In the same period, interest was repaid in the amount of EUR 40.72 million, of which the repayment of domestic interest amounted to EUR 7.18 million, while the repayment of foreign interest amounted to EUR 33.54 million – the report states.
During the second quarter, after a detailed analysis of the possibilities related to the further implementation of the hedging arrangement and the conclusion of the Government, the Ministry of Finance implemented the termination of the hedging arrangement. By terminating the transaction, the state earned about 64 million US dollars.
With the exit from the hedging arrangement, it is stated, there was an increase in the value of the debt to Exim China Bank in euros, bearing in mind that the existing dollar debt is no longer displayed at the EUR/USD exchange rate from the hedging arrangement of 1.18, but at the middle exchange rate of the Central of the Bank of Montenegro on the reporting date.
– This means that in the second quarter compared to the first, the debt to Exim China Bank increased by EUR 47.10 million. The currency structure also underwent changes, so at the end of the second quarter, the share of euro debt in the total state debt, compared to the end of the first quarter of this year, fell from 95.58 to 79.68% – the document concludes.
