A-1 motorway
Montenegro Reduces Currency Risk on Costly Chinese Highway Loan
The first phase of Bar Boljare highway in Montenegro. Photo: Government of Montenegro
The Chinese loan for the first phase of Bar-Boljare highway has imposed a heavy burden on Montenegro's public finances.
Minister of Finance and Social Care Milojko Spajic said an arrangement was made with two unnamed US banks and one from France, converting the loan from US dollars to euros.
Montenegrin Highway to Serbia Faces Fresh Funding Doubts
With the first section of the Bar-Boljare highway through Montenegro due to open at the end of 2020, funding for the rest of the Chinese-built road is looking doubtful due to the country's mounting debts and the global economic fallout from the COVID-19 pandemic, analysts warn.