NEWEUROPE Online
Failing aluminium complex triggers economic collapse
Edited by : AL CIRCLE
1 min read
Debt of The Aluminium Plant Podgorica (KAP) in Montenegro might trigger an economic collapse in the region, Montenegro Times reported.
The failing aluminium complex is jointly managed by the Montenegrin government and the Central European Aluminium Company (CEAC) controlled by Oleg Deripaska, a Russian billionaire, each owns 30% of the shares. Montenegro Minister of Economy Vladimir Kavaric said the government is expected to pay the first tranche of €22mn due to the Deutsche Bank in February.
According to him, this would entail financial crunch as the creditors for the remaining debt of €131mn is expected to come from Hungary's OTP Bank in April and the Russian VTB Bank in 2014. The minister said that the government is keen to negotiate with creditors to postpone commitments and discuss with strategic partners to assume the state debt in KAP. KAP represents the largest single source to Montenegrin GDP and exports but has been running a daily deficit of €200,000 since the economic crisis of 2008.
The failing aluminium complex is jointly managed by the Montenegrin government and the Central European Aluminium Company (CEAC) controlled by Oleg Deripaska, a Russian billionaire, each owns 30% of the shares. Montenegro Minister of Economy Vladimir Kavaric said the government is expected to pay the first tranche of €22mn due to the Deutsche Bank in February.
According to him, this would entail financial crunch as the creditors for the remaining debt of €131mn is expected to come from Hungary's OTP Bank in April and the Russian VTB Bank in 2014. The minister said that the government is keen to negotiate with creditors to postpone commitments and discuss with strategic partners to assume the state debt in KAP. KAP represents the largest single source to Montenegrin GDP and exports but has been running a daily deficit of €200,000 since the economic crisis of 2008.
Grow with
AL Circle
_md.webp)
