Money from Sale of Airport for Debt Repayment  | Beta Briefing

Money from Sale of Airport for Debt Repayment 

Source: Beta/Vijesti
SEE Business / Montenegro | 06.12.19 | access_time 15:19

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The money the government earns from the one-time payment for the privatization of the Tivat and Podgorica airports will be spent on debt repayment, rather than on a development project that would create new economic value in the state, daily Vijesti reported on Dec. 5. 

The draft budget for 2020 envisages up to EUR100m on those grounds. The draft Economic Reform Program for the period from 2020 to 2022 reads that the Brussels administration this past May recommended that the government use one-time revenues, such as revenues from privatization and concessions for airports, to accelerate state debt shrinkage. 

"Bearing in mind that the money envisaged by payments from privatization and concessions will be budget revenue, it will also be used to settle obligations on the grounds of debt payment. The revenues planned on these grounds diminish the need for securing money through credit arrangements, which directly affects public debt trends. Furthermore, all additionally earned revenues will be funds that will also enable the creation of fiscal reserves, which can in the coming years be used to finance the budget and reduce debt, which will result in public debt reduction," the government says in response to the recommendation.

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