Montenegro’s government, led by Prime Minister Milojko Spajić, has accumulated over €1 billion in debt in just one and a half years. By the end of March 2024, another €900 million in borrowing is planned. This continues the trend of the previous government, led by the Democratic Party of Socialists (DPS), which left the country with a substantial national debt of €3.7 billion after its defeat in the 2020 elections.
Since then, three different governments have taken office, with national debt projections set to reach approximately €4.6 billion by the end of 2024. Current borrowing is primarily to repay previous debts, including obligations to the World Bank, Deutsche Bank, and the IMF.
Financial analyst Ana Nives Radović criticized the government’s approach, claiming that instead of investing in development projects, the country is repeatedly borrowing to refinance old debts. This has contributed to a growing fiscal deficit, driven by rising public spending on salaries, pensions, and defense.
Credit agency Standard & Poor’s (S&P) downgraded Montenegro’s rating, leaving the country with a “B+” rating, the lowest in the Balkans, signaling high credit risk. This downgrade increases borrowing costs for the government, as higher rates are typically paid by countries with lower credit ratings.
The country’s national debt has more than doubled since 2014, yet no significant new capital projects have been launched, raising concerns about long-term economic sustainability. Radović warned that continuing this policy could lead to difficult economic situations, although not necessarily a full bankruptcy scenario. As of September 2024, Montenegro’s national debt stood at €4.46 billion, with each citizen’s share reaching approximately €7,158.
