The Deputy Prime Minister stated that it was “impossible to repay” the 800 million euro loan signed with the Export-Import Bank of China.
In one of the most rugged and magnificent landscapes in Europe, the 40-kilometer high-priced highway has suddenly become a major geopolitical issue between the European Union (EU) and China.Still under construction in the heart of Montenegro, a small Balkan country that has joined the European Union, part of this axis will-eventually-connect the Mediterranean coast with Serbia through the capital Podgorica, and to Serbia in the north. “Put our country in a very difficult position”, Alert, in an interview world Decision taken by Montenegro on Wednesday, April 14.This question “Financial Arrangement” Assisted in repaying the 800 million euro credit contract signed by the previous government with a Chinese bank in 2014 in Brussels.
“We are a small country with 600,000 inhabitants. This country is very poor and very dependent on tourism. For us, given the current situation of Covid, it is impossible to repay this money. Last season has been lost and we don’t know the next one. How will the season be”, The 35-year-old former anti-corruption activist explained that because an unprecedented and fragile coalition called pro-European parties and pro-Serbian organizations to overthrow Milo Djukanovic’s party, he suddenly became The Deputy Prime Minister in December 2020 has been a member of Montenegro since its independence in 2006.
Due to the economic recession after the outbreak, Montenegro’s debt will reach 104.8% of GDP in 2020. Since Mr. Djukanovic signed an agreement with the Export-Import Bank of China to finance this part of the road, Montenegro’s debt has accounted for about a quarter of China’s debt. Following the classic model of Beijing-funded projects, the construction work was entrusted to the Chinese state-owned company China Road and Bridge, and most of it was carried out by Chinese workers. The site is late and should not be completed before the end of 2021, but the contract stipulates that Montenegro will start repayment in July next year, and the annual maturity for the next 14 years is about 66 million euros.
Even if he realizes that this is due in part to the geological nature of the route, and from an environmental point of view, it is quite controversial because it passes through the lofty valley of Tara, “We will have one of the most expensive highways in the world, costing 26 million euros per kilometer”Condemn Mr. Abazovic. “The planned completion date of the construction site was not considered, but the Chinese told us that it was our fault because we would not get all the authorizations.”, He promised. According to Abazovic, the agreement stipulates that China can demand immediate loan repayment at any time, demand compensation for land in the event of a breach of contract, and use the Chinese judicial institution as the sole arbitration institution in the event of a conflict. “The previous government was really irresponsible. Now we have to pay for these wrong decisions.”
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