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NewsThe Montenegrin treasury could be empty in June as a result of...

The Montenegrin treasury could be empty in June as a result of inflation and higher wages?

The fact that Montenegro will have zero euros in the state coffers in June is the result of an increase in public administration salaries, inflation and excessive consumption that cannot be replaced by domestic production, economic analyst Oleg Filipović said for Gradska RTV.

It Is certain that the Government will have to take on debt as soon as possible, in order to have money to pay salaries, pensions and social benefits in June, and the best way is to issue Eurobonds on the international or domestic market, says Filipović. He warns that loans from the International Monetary Fund (IMF) should be avoided.

This means that you are limited in some way, and in others you lose instruments for managing your own finances. I don’t know if this government will go into debt or if another government will have to do it, but I am a supporter of what I said – direct access to the market and buying money at the cheapest price – said Filipović.

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Inflation, excessive employment and salary increases in the public sector are the reasons why the treasury will be empty already in June. This is according to the data of the Ministry of Finance, referred to by former representatives of that department.

The state coffers will be empty in June. Not all obligations can be covered that month. In June, we will have 50 million in the treasury at one point, but already on June 7 and 8 you will have to spend it, but when you reach the end of the month and according to their plan, you will not be able to cover all those obligations – said Branko Krvavac from the Movement of Europe now (PES) at the conference held on April 12.

The state budget is not only burdened by salaries, reminds analyst Filipović.

You have public procurements, for which I claim that 30-40 percent of them can be secured in a different way. With a rational approach and a good strategy, part of the funds can be provided without increasing taxes and some radical cuts – explained Filipović.

The reforms also includeincludee changes in the operations of commercial banks, the development of the financial and IT industry, concluded Filipović.

 

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