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Montenegro's govt plans to revise budget, borrow 500 mln euro

Author Radomir Ralev
Montenegro's govt plans to revise budget, borrow 500 mln euro Darko Radunovic; Source: Montenegro Government

PODGORICA (Montenegro), July 12 (SeeNews) - Montenegro's 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, finance minister Darko Radunovic said.

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 ($563.2 million), Radunovic said in a video file published on the YouTube channel of the Montenegrin government on Thursday. 

"The first half of 2019 was characterised by an increase in budget revenues above plan by approximately 21 million euro, or nearly 3%, and it is expected that this year they will be 6 million euro higher than planned and will amount to 1.834 billion euro, or 38.2% of expected GDP," Radunovic said.

According to the proposed plan published on the government's website, the 2019 budget deficit will amount to 142.6 million euro, slightly higher than the originally projected gap of 142.2 million euro. Total borrowing will be increased to 370.4 million euro from 370 million euro. 

Budget expenditure under the proposal is set at 1.976 billion euro, up from original 1.970 billion euro, the data shows.

Montenegro's 2018 budget deficit amounted to 159.2 million euro, equivalent to 3.5% of the country's GDP.

($ = 0.88777 euro)