April 11 (SeeNews) - Montenegro's finance ministry has said it aims to reduce public debt to gross domestic product (GDP) ratio to 56.5% in 2020.
The public debt of Montenegro is expected to rise to 67.5% of GDP in 2018 from 62.0% last year, due to the costs to be incurred for the construction of the Bar-Boljare motorway, the finance ministry said in a strategy for public debt management in the period 2018-2020 period posted on its website.
In 2019, Montenegro's public debt is expected to decline to 62.8% of GDP, the finance ministry said.
The government plans to invest 190 million euro ($235 million) in the construction of the Smokovac-Matesevo section of the motorway in 2018 and a further 203.7 million euro next year. The funding is already available and will be withdrawn from a credit extended by Exim Bank, the ministry noted.
A debt of 182 million euro will be repaid in 2018, while in 2019 and 2020 debt payments will total 573 million euro and 760 million euro, respectively.
Montenegro's parliament said last month it adopted a revision of the 2018 state budget envisaging a rise in budget deficit to 139.14 million euro ($171.14 million), equivalent to 3.16% of the planned gross domestic product (GDP).
($ = 0.808225 euro)