The Ministry of Finance has secured €450 million exclusively to create a fiscal reserve for 2026 and 2027, in accordance with Montenegro’s Budget Law and the 2025 Borrowing Decision. This measure ensures stable and timely budgetary support for the state to meet all debt repayment obligations, the ministry announced.
According to the statement, Montenegro’s total financing needs for 2026 and 2027 amount to approximately €2.2 billion. Of this, around €1.6 billion is allocated to debt obligations, while the remaining €600 million will finance capital and strategic development projects. The year 2027 is particularly notable, with an exceptionally high debt repayment requirement of around €1.2 billion.
The credit arrangement was concluded with renowned international financial institutions, including Merrill Lynch International, MUFG Bank, Société Générale, OTP Bank, Erste Group, AKA Ausfuhrkredit-Gesellschaft, and Eurobank Private Bank Luxembourg, highlighting Montenegro’s strong credibility in international financial markets.
- “The arrangement was agreed under highly favorable market conditions: the six-month EURIBOR plus a margin of 2.5%, which, based on current market trends, corresponds to an overall interest rate of approximately 4.5%. The loan has a five-year term with semi-annual repayment installments. These conditions enable stable debt repayment planning, reduce refinancing risk, and strengthen public finance resilience in years with higher fiscal pressures,” the ministry explained.
The credit arrangement followed a comprehensive analysis of international financial trends, which the Ministry of Finance continuously conducts to ensure the most favorable financing conditions. In October 2025, consultations were held with several international commercial banks, accompanied by detailed evaluations of the received offers, allowing for the selection of the most favorable and stable model to secure the fiscal reserve for the next two years, the statement emphasized.
