Budvanska Rivijera, Montenegro’s largest state-majority hotel group, and the company Euromix-Trade will finalize an agreement early next week to resolve the long-standing issue of completing the Cristal Riviera hotel in Petrovac, after more than ten years.
The agreement, confirmed internally, requires Euromix to either repay the outstanding loan taken eight years ago or transfer ownership of the “A2” building within the hotel complex—consisting of 26 hotel units valued at around €6 million—to Budvanska Rivijera.
Once notarized, Euromix will have 90 days to pay Budvanska Rivijera €2.7 million. If the payment is not made within that period, Budvanska Rivijera will assume ownership of the “A2” building.
Euromix initially took the loan from the Investment and Development Fund (IDF), now transformed into the Development Bank, but failed to make payments, causing Budvanska Rivijera, as a co-debtor, to cover the debt. Approval from the Development Bank was required to notarize the agreement.
Euromix had previously secured a partner to complete the hotel project on Petrovac’s beach. The original joint investment contract between Budvanska Rivijera and Euromix was signed in 2011, with permits granted in 2014 and a planned completion date in 2016.
The agreement also stipulates that both companies withdraw all ongoing legal disputes related to the project.
Euromix’s debt to Budvanska Rivijera includes the loan principal already paid by Budvanska Rivijera (€2.55 million) and three remaining installments totaling €156,000, plus interest at a 4% annual rate.
As collateral for repayment, Euromix will provide a lien allowing Budvanska Rivijera to establish a mortgage on the “A2” building. If Euromix defaults, Budvanska Rivijera will become the sole owner of the building, which holds a value well above the outstanding loan amount.
