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10. July 2013

MNE - Montenegro seeks financing solution for the country's loss-making aluminum factory

The state of Montenegro is seeking a financing solution for the country's loss-making aluminum foundry to bail Kombinat Aluminijuma Podgorica out of heavy debts, the Finance Ministry of Montenegro said. This could benefit Hungary's OTP Bank which, together with Russia's VTB Bank, has EUR 102 million in outstanding loans to the industrial plant.

Kombinat Aluminijuma Podgorica has strategic importance for the Montenegrin economy, contributing nearly 5% of GDP. The company is making losses on a massive level and requires a monthly EUR 3 million in government subsidies to remain operational. Negative profit totaled EUR 16.2 million in Q1 2013. The state of Montenegro is a 29% sharehgolder, with another 29% stake held by Russian billionaire Oleg Deripaska. Approximately 40% is held by numerous small shareholders.

Source: Opens external link in new windowbalkans.com

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