Montenegrin Govt Adopts 2010 Budget Draft with Deficit of 4.2%/GDP - Fin Min

Budget spending is set at 1.427 billion euro ($2.123 billion), or 40% of GDP, under the budget draft, Luksic told a news conference late on Thursday. An audio file with his speech was uploaded on the government’s website.

Luksic said that an agreement with the International Monetary Fund is possible next year, adding that talks with the global lender will follow shortly.

He also said Montenegro will have the possibility to ask the World Bank for financial support as well as to issue a Eurobond in 2010.

In July, the government revised its 2009 balanced budget, projecting a deficit equivalent to 2.6% of GDP instead, or a total shortfall of 90 million euro, as the global crisis deepened.

The government has said it sees Montenegro's economy contracting by a real 4.0% this year after growing by a preliminary 8.1% in 2008.

($=0.6724 euro)