Post by radovic on Apr 3, 2009 12:18:51 GMT -5
Djuknaovic lied. He claimed Montenegro will not need to borrow money, citing PzP claims of secret talks with IMF over 300 million euros.
Now it turns out, something which the media he constrols did not report. Montenegro has taken out over 100 million from EIB and is planning to takeout some 50 million from Kfw bank and 75 million from Deutsche bank.
Who knows how much more they will need? The wonders of Djukanovic.
Unlike in Serbia where the free media was reporting about how much the government would need and of secret talks months ago, in Montenegro foreigners know after the fact.
Montenegro in contact with Deutsche Bank over loan-deputy PM
Thu Apr 2, 2009 11:13am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
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PODGORICA, April 2 (Reuters) - Montenegro has been in close contact with Deutsche Bank as it tries to secure a loan of up to 75 million euros for its budget, Deputy Prime Minister Igor Luksic said on Thursday.
"At the moment, we would be happy to raise as much financial support as possible," Luksic told Reuters.
"We have spoken to many banks, but Deutsche Bank (DBKGn.DE) has shown the biggest initiative. They have also offered to be an agent in providing support from German and Austrian funds."
Law allows the government to borrow up to 75 million euros for its budget, he said on the sidelines of an economic forum.
Montenegro's 1.62 billion euro budget for 2009 assumes a 5 percent GDP growth. Earlier this month, the government cut the growth forecast to between zero and 2.5 percent.
The nation of 650,000 people, where the ruling coalition of long-time leader Milo Djukanovic secured a new four-year term in last Sunday's elections, has also been in talks with the International Monetary Fund and other multilateral lenders.
"We have contacts both with the IMF, with the aim of preparing a package of measures that we could activate if necessary, and some other international lenders for the support to our budget if needed," Luksic said. For its part, the government will cut non-essential spending.
"First, we intend to revise discretionary costs," Luksic said, adding that the government wanted to avoid a cut in wages and pensions, seen as negative for the shrinking economy.
The IMF has advised Montenegro against cutting tax and social contribution rates and raising capital and social spending on fears that this would boost the fiscal gap.
Turning to the IMF for financial assistance, to stabilise the balance of payments, where the current account deficit hit almost a third of GDP in 2008, would be no shame at the time of global economic downturn, a senior World Bank's official said.
"I think the lesson here for Montenegro is to get over the idea that there is a stigma in asking for help," Bernard Funk, World Bank's sector manager for Europe and Central Asia, said.
"There is no stigma; this is something in the past. In the future this is a hand of the friendship and if Serbia, Romania, Hungary reached for this hand there is no shame for a country like Montenegro to do the same," Funk told Reuters.
The World Bank, he said, has been active in securing commitment from private lenders to roll over credits to the region, to avoid external liquidity shocks to economies heavily reliant on foreign funding for growth.
Montenegro has already sought 150 million euros in loans from the European Investment Bank (EIB) and Germany's KfW bank to back liquidity of its banks. EIB this week approved 100 million euros for Montenegrin small and medium firms. (Writing by Gordana Filipovic; Editing by Victoria Main)
Now it turns out, something which the media he constrols did not report. Montenegro has taken out over 100 million from EIB and is planning to takeout some 50 million from Kfw bank and 75 million from Deutsche bank.
Who knows how much more they will need? The wonders of Djukanovic.
Unlike in Serbia where the free media was reporting about how much the government would need and of secret talks months ago, in Montenegro foreigners know after the fact.
Montenegro in contact with Deutsche Bank over loan-deputy PM
Thu Apr 2, 2009 11:13am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
Market News
Dow briefly turns high on tech boost | Video
World stocks rise after jobs data
Oil falls below $52 as jobs report weighs | Video
More Business & Investing News... By Bojana Stanisic
PODGORICA, April 2 (Reuters) - Montenegro has been in close contact with Deutsche Bank as it tries to secure a loan of up to 75 million euros for its budget, Deputy Prime Minister Igor Luksic said on Thursday.
"At the moment, we would be happy to raise as much financial support as possible," Luksic told Reuters.
"We have spoken to many banks, but Deutsche Bank (DBKGn.DE) has shown the biggest initiative. They have also offered to be an agent in providing support from German and Austrian funds."
Law allows the government to borrow up to 75 million euros for its budget, he said on the sidelines of an economic forum.
Montenegro's 1.62 billion euro budget for 2009 assumes a 5 percent GDP growth. Earlier this month, the government cut the growth forecast to between zero and 2.5 percent.
The nation of 650,000 people, where the ruling coalition of long-time leader Milo Djukanovic secured a new four-year term in last Sunday's elections, has also been in talks with the International Monetary Fund and other multilateral lenders.
"We have contacts both with the IMF, with the aim of preparing a package of measures that we could activate if necessary, and some other international lenders for the support to our budget if needed," Luksic said. For its part, the government will cut non-essential spending.
"First, we intend to revise discretionary costs," Luksic said, adding that the government wanted to avoid a cut in wages and pensions, seen as negative for the shrinking economy.
The IMF has advised Montenegro against cutting tax and social contribution rates and raising capital and social spending on fears that this would boost the fiscal gap.
Turning to the IMF for financial assistance, to stabilise the balance of payments, where the current account deficit hit almost a third of GDP in 2008, would be no shame at the time of global economic downturn, a senior World Bank's official said.
"I think the lesson here for Montenegro is to get over the idea that there is a stigma in asking for help," Bernard Funk, World Bank's sector manager for Europe and Central Asia, said.
"There is no stigma; this is something in the past. In the future this is a hand of the friendship and if Serbia, Romania, Hungary reached for this hand there is no shame for a country like Montenegro to do the same," Funk told Reuters.
The World Bank, he said, has been active in securing commitment from private lenders to roll over credits to the region, to avoid external liquidity shocks to economies heavily reliant on foreign funding for growth.
Montenegro has already sought 150 million euros in loans from the European Investment Bank (EIB) and Germany's KfW bank to back liquidity of its banks. EIB this week approved 100 million euros for Montenegrin small and medium firms. (Writing by Gordana Filipovic; Editing by Victoria Main)