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March 9, 2018 www.intellinews.com I Page 32
bne:Credit Montenegro hikes 2018
deficit
Montenegro’s government has revised its budget plan for 2018, raising the projected deficit to 3.16% of GDP from initially planned 2.6%, a statement on the government’s website said. At the same time, the borrowing for this year was also increased, to €440mn from initially planned €296.7mn.
The government plans to spend an additional €70mn this year as it starts paying Italy’s A2A for its stake in power firm EPCG. A2A sent a put option notice to Montenegro’s government, exercising the right to sell its 41.7% stake in power company EPCG for €250mn, in July 2017. At the end of September, A2A’s three-month deadline to find a buyer for its stake ended, clearing the way for Podgorica to buy it back for €250mn under the put option agreed between the two parties.
According to the revised plan for new debt, the government could borrow up to €250mn for budget spending, debt repayment and reserves, and another €190mn for the ongoing construction of the first section of the key Bar-Boljare motorway. The government could issue bonds on the domestic or international markets, according to the changes.
Poland’s Monetary Policy Council (MPC) kept interest rates un- changed at 1.5% at its meeting on March 7.
The press conference following the announcement of the rates decision revealed that the dovish mood has made further progress within the MPC. “Hiking interest rates is completely unlikely in the current macroeconomic environment,” the governor of the National Bank of Poland (NBP) and the council’s chairman Adam Glapinski said
While he underlined he did not like discussing developments reach- ing longer than 12 months ahead, Glapinski did say that – barring major changes in the global and Polish economy – there is little to indicate that there will be a hike in the rates in 2019 or even in 2020.
“There are no imbalances in the economy. The situation is perfect,” Glapinski said. What has been traditionally the focus of concern – the tightening of the labour market and the resulting fast growth of wages – is yet to exert any considerable upward pressure on infla- tion.
Polish central bank says everything is perfect