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Montenegro introduces 90-day moratorium on loan repayments

Author Radomir Ralev
Montenegro introduces 90-day moratorium on loan repayments Dusko Markovic; Source: Montenegrin Government

PODGORICA (Montenegro), March 20 (SeeNews) - Montenegro's government has introduced a three-month moratorium on the repayment of loans to limit the economic impact of the coronavirus crisis, it said.

The repayment of loans to banks, financial leasing companies and the Investment-Development Fund of Montenegro (IRF) will be postponed at the request of citizens and businesses, the government said in a statement on Thursday. 

"Our banking sector needs to provide the highest degree of administrative efficiency so that everyone who wants to exercise this right can do it easily. I am convinced that banks have the potential to do so," prime minister Dusko Markovic said in the statement.

Moreover, the government has introduced a 3 million euro ($3.2 million) credit line with an interest rate of 1.5% to back companies active in the delivery of medicines, medical equipment and vehicles, tourism and catering, transport, services, as well as food production and processing, the government said.

The payment of leases for state-owned real estate was also postponed by 90 days, while the launch of all types of public procurement except those necessary for the functioning of the health system were banned, it added.

Montenegro has so far confirmed 13 cases of the novel coronavirus disease. The country has closed its borders for foreign nationals to prevent the spread of the disease on its territory. 

($ = 0.927628 euro)