Bulletin - Vlada Crne Gore

Report on account of public debt of Montenegro
BULLETIN OF THE MINISTRY OF FINANCE/APRIL - JUNE 2006
Kombinat Aluminijuma Podgorica, was settled after successful
process of privatisation of this company.
2. INTERNAL PUBLIC DEBT
Internal public debt of Montenegro consists of liabilities
based on old foreign currency savings, liabilities based on
credits taken from domestic financial and other institutions,
liabilities based on the issue of short-term treasury bills, debt
of local self-governments and payment arrears from the
budget.
Table 3. Structure and amount of internal public debt.
the country, from 30% to 50% indicates the medium indebtedness
of the country, having in mind that Montenegro with
21,1% belongs to less indebted countries, and share of over
50% the high indebtedness of the country. Just for comparison,
at the end of 2004, with certain number of countries in
the process of transition this indicator was: Bulgaria 57,6%;
Czech Republic 37,4%; Croatia 79,9%; Lithuania 43,2%;
Hungary 59,0%; Romania 39,8%; Slovenia 50,1%.
When compared to the gross domestic product anticipated
for 2006, gross public debt of Montenegro at the end of
2006, amounts 36,6%. This is "significantly" lower from the
defined fiscal criterion, of the maximum allowed public debt,
of the European Union, which makes the Montenegro meet
one of two Maastricht criteria which proscribe that the total
debt should not cross 60% of the gross domestic product.
In the indebtedness structure is noticeable the indebtedness
reduction based on treasury bills and almost total
elimination of the debt based on bank credits so that the
indebtedness based on treasury bills amounted 6,5 million
EUR. Until 30th June 2006, about 3 million EUR of old foreign
currency savings bonds have been paid. Also, there has
been a significant further reduction of liabilities based on
outstanding budgetary payments for 15,2 million EUR. To
the total amount, domestic debt in first two quarters of 2006,
was lower for 19,4 million EUR when compared to
31.12.2005.
This indicator is considered to be the most important indicator
of the debt sustainability.
According to value of mentioned indicators, Montenegro
is ranked in countries with low indebtedness with tendency
of further improvement.
5. INDICATORS FOR
INDEBTEDNESS OF
MONTENEGRO- FINAL
OBSERVATIONS
According to the methodology of World Bank (Debt
Reporting System) share of foreign debt in the gross domestic
product lower than 30% indicates the low indebtedness of
DEBT AND CASH MANAGEMENT DEPARTMENT
SNEŽANA IVANOVIĆ, MERSIJA PURIŠIĆ,
MINA JOVOVIĆ, M.A. NIKOLA VUKIĆEVIĆ
3 - According to the projection of the Deutsche Bank Research
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