Montenegro Borrows $47.4 Mln from China to Buy Two Chinese Cargo Ships

The credit agreement was signed by Montenegrin state sailing company Crnogorska Plovidba and China Eximbank, while Montenegrin Finance Minister Igor Luksic signed state guarantees for the loan on behalf of the government, Montenegro’s Transport Ministry said in a statement.

The loan is extended with a term of 15 years with a five-year grace period and a fixed interest rate of 3.0%. It covers 85% of the price Montenegro will have to pay for the two ships, which will cost $27.88 million each. Crnogorska Plovidba has to secure the remaining 15% of the price, or $8.364 million.

“The ships were bought at almost half the price compared to a year ago,” the statement said.

At the end of October, Montenegro signed contracts with China’s Poly Group and the Shanghai Shipyard for the building of two identical ships. They will be the so-called handymax ships - each with a capacity to transport 35,000 tonnes of cargo, 179.9 metres long and 28.4 metres wide. The ships will be suitable for transporting bulk cargo such as grain, timber, and ore.

The deadline for the delivery of the first ship is 21 months and for the second one – 24 months, as of Tuesday.

($=0.7111 euro)