Insight view

THE COUNTRY: ECONOMIC POLICY
Guarantees paid by the country from
2011 until 2014
(Source: Ministry of Finance)
Company
Amount in
million €
Aluminium Plant Podgorica 126,0
Steel factory Nikšić 32,9
Pobjeda 7,2
Bauxite Mines Nikšić 5,5
Megalonia Primorka 4,5
Mi-Rai 1,7
FEP 1,7
The National Audit Institution controlled all arrangements of the
government that were higher than 10 million euros, which included
Aluminum Plant (KAP), Steel Factory, Pobjeda, Railway
Infrastructure, and Railway Transport. The country guaranteed
this country and mostly and already paid loans in the total
amount of 214.53 million euros, and according to the opinion of
an auditor it was important to include guarantees that KAP had
received in 2009, when the settlement agreement was signed.
The contracts then signed representatives of the Government
of Montenegro, and Russian partner CEAC, and it envisaged
issuing of five guarantees, out of which three were given the
same year (49.6 million euros).
Lenka 0,6 National Auditors assessed that three responsible entities –
Ministry of Economy, Ministry of Finances, and Commission for
the Control of National Assistance – did not assess appropriately the financial situation of KAP, Steel
Factory, and Pobjeda, and did not sufficiently appreciate statements of commercial auditors.
According to the findings of the National Audit Institution, financial
business indicators of these companies showed they
were not capable of servicing loans appropriately from their
own finance sources, and that their continuation of business
was an issue.
According to some media statements, the National Audit Institution
examines if there were grounds for initiating criminal
proceedings for this report of the supreme national audit, although
the National Audit Institution equivocally indicated that
guarantees of this company were not in accordance with rules,
which resulted in payment of a couple hundred million euros of tax payers.
301
million €
of guarantees –
the country issued to
private companies for
the previous
decade
Last year guaranteed for 208.6 million euros
Law on budget of Montenegro for 2015, the government planned to issue guarantees in the amount of 101.6
million euros. After the decision of the Government from September 2015, this amount rose to 208.6 million
euros. According to Proposal of the Law on budget for 2016, the country planned to guarantee for up to 26
million euros loans.
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