Montenegro may consider launching a new Eurobond in 2012 as part of its efforts to fund its budget and cope with a euro zone economic downturn, its finance minister said in an interview.
The tiny Adriatic country sold two Eurobond tranches worth 380 million euros ($494.68 million)in 2010 and 2011 after splitting peacefully from Serbia in 2006 and unilaterally adopting the euro in 2002 in defiance of the EU and the European Central Bank.
On Monday, Prime Minister Igor Luksic told Reuters Montenegro's growth should reach 2.5 percent next year, but a downward revision may be needed if the worsening debt crisis in the euro zone tips its major trading partner into a contraction.
Montenegro also faces serious problems in its indebted metals industry which could stress its finances. Meanwhile, the country will maintain its existing 20-year $85 million loan deal with the World Bank and may also consider seeking a precautionary loan deal with the International Monetary fund (IMF), Katnic said.