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PODGORICA (Montenegro), July 24 (SeeNews) - Montenegro's government plans to borrow 500 million euro ($557.2 million) at an interest rate of 3% to refinance existing debt, finance minister Darko Radunovic said.
"[...] We are currently paying 5.5%, we would save 2.5 percentage points, and for 500 million euro this would be around 12 million euro annually," Radunovic said in a video file posted on the website of public broadcaster RTCG on Tuesday.
Earlier this month, Radunovic said the government plans to revise the 2019 budget in order to refinance existing debt and create a fiscal reserve for repayment of obligations due next year.
The revision will not change the planned budget deficit equivalent to 2.97% of 2019 gross domestic product (GDP) but will create opportunities for the issuing of securities or taking out a loan of 500 million euro, Radunovic said earlier in June.
Montenegro's 2018 budget deficit amounted to 159.2 million euro, equivalent to 3.5% of the country's GDP.
($ = 0.8973 euro)