Montenegro plans to allow citizens to directly invest in government bonds, aiming to create a secure investment option and stimulate the capital market, according to Aleksandar Šćekić, head of Investment Banking at Erste Bank.
Šćekić highlighted that the first bond issuance should not exceed €100 million, with interest rates above 3%, making it attractive compared to traditional bank deposits. The initiative is expected to benefit both the state, which can borrow at favorable terms, and citizens, who can earn higher returns on surplus funds.
The Ministry of Finance has established dialogue with banks for distribution and plans to cover subscription costs. Šćekić emphasized the importance of an educational campaign to inform citizens about the benefits, security, and potential returns of investing in these bonds.
He noted that similar “citizens’ bond” programs have been successful in neighboring countries, such as Croatia, where interest rates exceed 3%, and suggested a short-term bond period of 2–3 years for the initial issuance. Previous attempts in Montenegro in 2017 and 2019 saw minimal citizen participation, with most bonds purchased by banks and insurance companies.
