According to data of the Central Bank of Montenegro and the Central Securities Depository and Clearing Company of Montenegro, CKDD, the new Ministry of Finance will soon have to deal with the liabilities based on issued treasury bills. In mid-January 2021, it’ll have to pay back €14.9 million that the Deposit Protection Fund (FZD) lent to the state on July 15 this year.
After the Ministry of Finance pays back the money it borrowed, alongside the interest, another payment is due in February. On 16 February, the state will have to pay €5 million it borrowed in August this year through treasury bills, and the additional €6.8 million on 24 February, also borrowed in August this year.
In early October this year, Dan daily published that the Deposit Protection Fund, headed by Mr Predrag Marković, purchased treasury bills amounting to €31.7 million in the period from April to September, thus lending the Ministry of Finance the money for funding current obligations. Data processed by the Crime and Corruption-reporting Network, LUPA, confirm the allegations.
During this year, a total of eight auctions of treasury bills were held, the first of which was organized on January 13. At that time, €14.9 million treasury bills were sold.
At the end of April, the Ministry of Finance organized the fourth auction of treasury bills. As there were no interested parties to buy them, the FZD emerged and lent €15 million to the state by purchasing all treasury bills at the time in order to prevent the auction from failing.
It’s interesting to learn that the auction was held after more than a month since the coronavirus outbreak in Montenegro started. The Ministry of Finance repaid the debt on 29 October.
The fifth auction of treasury bills was organized on July 15. At the time, the FZD repurchased treasury bills worth €14.9 million to help the state settle its current liabilities.
One month later, on August 17, the sixth auction was organized, and finally a buyer outside the state sector appeared. Hipotekarna Bank bought 100% of treasury bills worth €5 million.
The same month, the seventh auction happened and Hipotekarna Bank bought majority, i.e. 73.53% of treasury bills worth €5 million, while the FZD bought 26.47% or €1.8 million treasury bills.
The eighth auction was held on October 28 this year, and according to data of CKDD, the State Deposit Protection Fund bought €15m treasury bills from the Ministry of Finance that day.
Its repayment is due on 29 April 2021.
