Montenegro’s government has authorised further negotiations with Société Générale for up to 313 million euros in proposed financing for a new university clinical centre in Podgorica. At its November 5 meeting, the government approved a framework after the Finance Ministry selected the bank’s revised offer as the most favourable. The decision does not amount to a signed loan agreement or completed financing arrangement.
Finalising the debt terms is the immediate milestone for a project being developed under an intergovernmental cooperation agreement between Montenegro and France. The financing structure would combine an export-credit-backed loan with a separate commercial facility for advance payments.
Proposed financing terms
Under the proposed structure, 283.1 million euros would come through an export-credit-backed loan supported by France’s Bpifrance Assurance Export. The facility would have a 12-year maturity, including a four-and-a-half-year grace period, with interest set at six-month Euribor plus 0.45 percentage points.
The loan would include an export-credit insurance premium equivalent to 10.83%, adding to its overall financing cost. The remaining 29.9 million euros would be provided through a separate commercial facility for advance payments, with a five-year maturity and interest at six-month Euribor plus 1.90 percentage points. Both proposed facilities would carry processing fees of 0.35%.
The Finance Ministry contacted 14 international banks and received 12 offers, including one joint proposal. It narrowed the selection to four before choosing Société Générale for final negotiations.
Project schedule and costs
Montenegro’s Ministry of Public Works signed a design-and-build contract with Bouygues Bâtiment International in June 2026. Construction is scheduled to begin in the first half of 2027, with an estimated implementation period of 48 months. Design expenditure of approximately 8.9 million euros is being financed separately through the state budget.
The planned centre will provide more than 700 beds and 19 operating theatres, alongside emergency and specialist treatment facilities. The development could create demand for construction, electrical and mechanical engineering, medical equipment, digital hospital systems and specialist project supervision.
The proposed interest rates would vary with Euribor, while export-credit premiums, construction contingencies and future operating costs would affect the project’s total financial burden. Montenegro must keep construction financing, procurement commitments and future hospital operating expenditure consistent with its wider fiscal framework. Negotiations must now be completed and final debt terms confirmed.
