European Commission spokesperson Peter Stano said that Montenegro cannot expect the EU to repay the loan for the construction of roads from China.
Stano said: “We did not repay the loan that our partner in the Western Balkans obtained from a third party,” he responded to a reporter’s request for the Montenegrin government to repay the loan.
The Deputy Prime Minister of the Republic of Montenegro, Dritan Abazovic, told the European Parliament in late March that the European Union should help Montenegro to repay the 1 billion euro loan from the Export-Import Bank of China, which is to build the border from Bar to Serbia. The first part of the highway. China’s influence in that country.
In 2014, Montenegro borrowed from a Chinese bank to build the first of three sections of highway from Bar (the coastal city to the border of Serbia) with an annual interest rate of 2%, and the six-year grace period ends here for one year.
This arrangement has increased Montenegro’s public debt to more than 80% of its GDP.
In response to a question from the Montenegrin parliamentarian, Abazovic said: “I call on the financial institutions of the European Union to consider the aid model for Montenegro to stop any unhealthy foreign influence and raise it to a reasonable level.”
Stano reminded that the European Union is Montenegro’s largest financial aid provider, largest investor and trading partner. The committee has passed a plan to mobilize 9 billion euros to invest in the Western Balkans for transportation, clean energy, and green. And green energy. Digital transition.
“Each country is free to choose the investment and credit arrangements it needs. Especially Montenegro, we are concerned about the socio-economic and financial impact of some investments in China. There are risks of macroeconomic imbalances and debt dependence,” Stano said.