This week on the Montenegro Stock Exchange, the market saw a slight increase in indices and a notable surge in trading volume, particularly driven by the Ministry of Finance’s issuance of €850 million worth of government bonds.
The MNSE10, which tracks the top ten companies on the exchange, rose by 0.3% to 1,184.97 points, while the MONEX index increased slightly to 17,795.29 points.
Trading volume for the week totaled €284.8 thousand, more than 1.7 times the previous week’s volume, largely due to the sale of shares of Montenegro-express from Budva. On Monday, 4.12% of Montenegro-express shares were sold for a total of €139.08 thousand.
By the end of the week, shares of Montenegro-express were priced at 16.6 cents.
Other stocks that saw gains included Luka Bar, which rose 3% to 34 cents, and Crnogorski elektroprenosni sistem, which increased marginally to €1.2. Shares of Elektroprivreda also rose slightly to €5.4. Shares of Hipotekarna Bank remained unchanged from the previous week at €9.3.
The shares of Institut „Simo Milošević” closed at €58, Jugopetrol at €15, Zetatrans at €1.09, HTP Vektra Boke at 20 cents, and Kotorski Napredak at 5 cents.
On Tuesday, the Ministry of Finance issued government bonds worth €850 million on the London Stock Exchange, with an interest rate of 4.87% and a maturity period of seven years.
The Ministry stated that they had secured the funds under the most favorable conditions possible to refinance over €800 million in old debts, which are due for repayment by the end of this year.
Economic analyst and director of Fidelity Consulting, Miloš Vuković, noted that this €850 million debt is the largest in Montenegro’s history, with an additional interest payment of around €290 million. This means that citizens will repay a total of approximately €1.1 billion.
Prime Minister Milojko Spajić stated during the Prime Minister’s Hour that the government would continue to regularly issue bonds, adding that the state treasury currently holds over €1 billion.
“We will continue to issue bonds regularly. We issued bonds with an interest rate of 4.8%, which is an excellent result,” said Spajić.
He reiterated that the funds would only be used to repay old debts and for some capital investments.
“With the funds we have in the treasury, we have over €1 billion in liquidity. This will not be used for consumption, salaries, pensions, or social benefits, as we have a surplus in the current budget,” Spajić concluded.
The week also saw the announcement that Montenegro’s economy, according to the European Bank for Reconstruction and Development (EBRD), continues to show resilience and growth, supported by key reforms and strategic investments.
EBRD’s Head for Montenegro, Remon Zakaria, mentioned that in the past year, the EBRD invested €104 million in Montenegro, with €92 million allocated to green projects promoting energy efficiency, renewable energy, and decarbonization.
“Our strong partnerships with local partners, donors, and the private sector have been key to enhancing these efforts. We remain committed to supporting Montenegro’s sustainable development and fostering a more competitive and environmentally friendly economy,” Zakaria said.
Later in the week, Montenegro’s government and the United Arab Emirates (UAE) signed agreements on economic cooperation and joint investments, aimed at boosting bilateral collaboration on strategic projects of mutual interest.
The agreements are expected to focus on key areas, particularly strategic and public interest projects that will bring economic benefits to both nations.
However, the Network for Affirmation of the NGO Sector (MANS) expressed concerns, claiming that the agreement with the UAE poses a high risk of being misused for money laundering, citing that data on the real owners of UAE-registered companies is not publicly available. MANS also warned that the agreement suspends several Montenegrin laws.
In response, Prime Minister Spajić defended the agreement, emphasizing that it would enable investments exceeding €30 billion in Montenegro.
“The most important aspect of this agreement is that, for the first time in history, the UAE government directly guarantees and supports a project. With such investors, there will be no corruption or issues like the ones many are accustomed to seeing in Montenegro,” Spajić stated.
On Thursday, the government approved the Agro-Budget proposed by the Ministry of Agriculture, Forestry, and Water Management, allocating €77.06 million. These funds are designated for rural development, agriculture, fisheries and the implementation of phytosanitary and food safety measures, as well as animal health protection.
“With the adoption of the Agro-Budget, the implementation of agricultural policy measures will be secured to ensure the continuous development of the agriculture, rural development and fisheries sectors in Montenegro,” the Ministry said.
