Montenegro eyes trade boost with Chinese ships deal.
Chinese state-owned Exim bank approved a loan allowing Montenegro to buy two ships worth 55.7 million dollars (39.5 million euros), to help the tiny Adriatic state boost its trade links. Chinese state-owned Exim bank on Tuesday approved a loan allowing Montenegro to buy two ships worth 55.7 million dollars (39.5 million euros), to help the tiny Adriatic state boost its trade links.
The Export-Import Bank of China will finance 47.4 million dollars and the Montenegrin Shipping company will pay the remaining 8.3 millions for the ships, from China's Poly Group, officials said after signing a deal on the loan.
The Montenegrin government provided guarantees for the agreement on the 15-year loan, which has a five-year grace period and 3.0 percent interest rate, the ministry of transport said.
"The purchase is extremely important of the economy of Montenegro and it brings back a hope into revitalisation of maritime trade," the Minister of Transport Andrija Lompar told reporters.
In its heyday in the 1980s the Montenegrin Shipping company had a fleet of 27 ships for international trade but the 1990s wars and sanctions saw trade dwindle. At the moment the company has no ships for international sea trade.
The agreement is "only a first project (of China) to contribute a renewal of the oversees shiping and economy development of Montenegro," Li Ruogu of the Exim bank said.