Montenegro has no plans to offload state property to ease debts, says local newspaper

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Montenegro has no plans to offload state property to ease debts, says local newspaper

A couple of days after the Finance Minister of Montenegro, a tiny Balkan state, had said in an interview that the country had been contemplating a strategic sale of state properties to ease debt-loads, a local newspaper claimed over the weekend that Montenegro denied any plans to sell state properties to offload debts, suggesting a potential ruckus rising over the horizon which could eventually turn into a political gridlock.

In point of fact, the latest local newspaper report denying Montenegro’s plan to a strategic sale of state properties came forth, as the Finance Minister of the country, Milojko Spajic, was quoted saying in a recent interview that the Government was looking to a potential review of state assets which could ultimately lead to a regular sale, however, Spajic also said that the country’s public finances were stable.

Local newspaper rejects claims Montenegro looks to sell state assets

Apart from that, later last week, a press agency report was quoted one of the senior EU official as saying that Montenegro, a home to 628,000 people, had been seeking to raise cheap EU credit as part of a plan to offload a financial burden that came alongside a $944 million in debts from China, while an attempt to raise credits would likely to be spearheaded by leading euro zone economies such as France, Germany and Italy, added the EU official.

Nonetheless, denying Montenegro’s latest plan of a divestiture of state asset, a local newspaper, The Dan Daily, quoted an unnamed finance ministry official as saying that there had been no plans to sell state assets for repaying Chinese debts, “nor is there any need for that."

Back in the 2014s, Montenegro had borrowed a stark upsum of $944 million from China in debts to stretch a highway close to its neighbour Serbia, however, the overall loan had led to a torrential high-tide in Government’s debts which currently stood at 103 per cent of the country’s gross output.