Montenegrin finance minister Radoje Zugic and the vice chairman of Rothschild Bank's European operations, Jean-Claude Meyer, discussed earlier this week the aspects of a potential cooperation between the country and the financial institution, the finance ministry said.
The two met in Paris on Nov 5 during Zugic’s official visit to France.
Rothschild offered to help Montenegro in the area of financial advisory on large-scale development projects in the tourism, energy and transport sectors. The bank also expressed interest in Montenegro’s privatisation process.
Furthermore, Rothschild also proposed to assist Montenegro in the financing and refinancing of public debt, the ministry said in a statement without elaborating.
Montenegro’s public debt increased sharply since its 29%/GDP level in 2008 to 52.5%/GDP at end-August – and the country’s financing needs are expected to increase significantly in 2014 and in 2015 when it will have to refinance its two Eurobond issues placed in September 2010 and January 2011 worth a combined EUR 380mn.
Earlier this month vice central bank governor in charge of financial stability, Nikola Fabris, said that Montenegro has to repay some EUR 400mn in 2014 and EUR 500mn in 2015 and will likely have to place a Eurobond to meet its obligations.
On the other hand, the two key projects Montenegro has been preparing to launch for some time now are the Bar-Boljare motorway that will link its biggest Adriatic port of Bar with the Serbian border in the north and the submarine power transmission cable that will connect its electricity system with the Italian one.
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