Montenegro’s government has revoked an earlier decision allowing Luštica Development to pledge rights over the Luštica Bay marina and waterfront promenade as security for a €15 million loan from Belgrade-based Alta Bank. The government had approved the security on 29 June, but approximately one month later reversed that decision and instructed the ministry responsible for property matters to remove the lien from public records.
The government cited unspecified “legal and factual circumstances” for the reversal and did not provide a detailed explanation. The proposed facility had a five-year maturity and was intended to finance working capital. It included a 12-month grace period and carried a fixed annual interest rate of 8.5%, which would have fallen to 7.5% after registration of the security. The collateral would have provided Alta Bank with rights over the Luštica Bay marina and adjoining promenade if the borrower defaulted.
The assets are located on state-owned coastal land near Tivat, while Luštica Development holds usage rights over the property. Government approval was therefore required for the proposed security arrangement. Luštica Development is controlled by Swiss-based Orascom Development Holding, with the Montenegrin state holding a minority stake. The company told local newspaper Vijesti that it currently had no credit arrangements with Alta Bank. Its 2025 financial statements, however, recorded €10.65 million in outstanding long-term loans from the Serbian lender across three facilities.
Luštica Development reported total long-term borrowing of €47.7 million at the end of 2025. Of that amount, €24.3 million was owed to Montenegro’s Crnogorska komercijalna banka (CKB). The developer subsequently obtained an additional €35 million loan from Serbian lender AikBank in January 2026. The government’s withdrawal therefore removes the previously approved security arrangement for the €15 million Alta Bank facility while Luštica Development continues to have significant long-term bank borrowing.
