Reuters reveals Montenegro close to deal on lifting Chinese debt burden

Montenegro is weeks away from securing a deal to either swap or refinance with European and U.S. banks nearly $1 billion in debt owed to China, and hopes to reduce the interest rate on the debt to below 1%, Economy Minister Jakov Milatovic told Reuters. Montenegro borrowed $944 million from China in 2014 to fund a 41-km (25-mile) stretch of road, which foes of then-Prime Minister Milo Djukanovic dubbed the “Road to Nowhere,” saying it typified waste under his rule, an accusation he denied. Previously, Reuters revealed that Montenegro was counting on European Union aid to ease its Chinese debt burden.