Montenegro will issue its first citizen bonds in October, Finance Minister Novica Vuković announced on Radio Montenegro. The total value of the bonds will be 50 million euros, and citizens are expected to earn higher returns than traditional bank deposits. Six banks will partner with the government to facilitate the bond issuance, with all transaction fees covered by the Ministry of Finance. This initiative aligns Montenegro with other regional countries using citizen bonds as a tool to mobilize domestic savings.
“Instead of borrowing on international markets, the government has decided to raise funds domestically through a 50-million-euro citizen bond issuance. The bonds are expected to be issued in October,” Vuković said.
He noted that the project has been in development throughout 2025 and that this type of bond will be introduced for the first time on the Montenegrin market.
“Commercial banks currently hold nearly three billion euros in deposits. Banks are highly liquid, and this initiative does not compromise liquidity ratios. Citizens can now invest their surplus funds safely in the state, which I believe is the best option,” he added.
The minister emphasized that the bonds will offer citizens secure investment opportunities with higher returns than typical bank deposits. The interest rates will also be more favorable for the state compared to international borrowing costs.
The first issuance will be conducted through six partner banks: NLB, ERSTE, CKB, Prva, Hipotekarna, and Universal Capital. Vuković explained that the process would be simple: citizens can transfer funds from their accounts at the participating banks to the state and receive confirmation of ownership of the bonds. The Ministry of Finance will cover all fees.
Vuković also clarified why the issuance will not be conducted via the Montenegro Stock Exchange, stating that the conditions offered by the banks were more favorable.
Interest rates and maturity periods, expected to be 18 months to two years, will be announced in early October, with semiannual coupon payments. Similar citizen bond programs exist in neighboring countries:
- Croatia issues a two-year national bond with a coupon over 3 percent.
- Slovenia offers three-year bonds with a 3.40 percent yield.
- North Macedonia issues a 24-month development bond.
- Serbia offers mostly dinar-denominated savings bonds.
This move marks Montenegro’s entry into the regional trend of retail bonds, offering citizens a secure and profitable way to invest in the country.
