At the end of March, Montenegro’s total public debt stood at 4.5 billion euros, representing 56.93 percent of the country’s GDP, according to the Ministry of Finance’s quarterly report on state and public debt.
Considering the Ministry of Finance’s deposits, including 38,477 ounces of gold, the net public debt amounted to 4.2 billion euros or 53.15 percent of GDP as of March 31, 2025.
The total state debt at the end of March was 4.45 billion euros, or 56.21 percent of GDP. After accounting for deposits, the net state debt was 4.15 billion euros, representing 52.42 percent of GDP.
The most recent borrowing of 850 million euros from this year, through a seven-year government bond issuance with an interest rate of 4.875 percent, was not included in these figures.
Deposits at the end of March totaled 300.06 million euros, including gold valued at 111.01 million euros, making up 3.79 percent of GDP.
Montenegro’s total external debt at the end of March was 4.12 billion euros or 52.15 percent of GDP, which is 53.73 million euros less than at the end of the previous year. The decrease is attributed to regular debt repayments during the first quarter. Bonds issued on foreign markets make up the largest share of external debt.
The country’s internal debt was 321.06 million euros or 4.05 percent of GDP at the end of March, down by 10.24 million euros compared to the end of the previous year. The reduction is due to regular repayments, with loans from commercial banks constituting the largest portion of internal debt.
Local government debt totaled 57.55 million euros or 0.73 percent of GDP at the end of March.
External debt dominates the structure of Montenegro’s state debt, accounting for 92.8 percent, while domestic debt makes up 7.2 percent. This distribution remained roughly the same as at the end of last year, mainly because there were no new credit arrangements during the first quarter, and repayments reduced debt from both sources.
Thanks to a cross-currency swap arrangement related to a loan from China’s Exim Bank for the Bar-Boljare highway construction and another swap converting the total dollar amount of bonds issued in the first quarter of 2024, Montenegro significantly improved the currency structure of its state debt. As of the end of March, only 0.6 percent of existing debt was denominated in non-euro currencies—0.3 percent in dollars and 0.3 percent in Special Drawing Rights (SDRs)—while 99.4 percent was in euros.
Regarding interest rate structure, the majority of state debt (83.5 percent) carries fixed interest rates, indicating portfolio stability. Debt with variable interest rates, mostly linked to EURIBOR, accounts for 16.5 percent.
During the first quarter, Montenegro repaid 78.72 million euros in principal and interest obligations to residents and non-residents. Principal repayments to residents amounted to 8.11 million euros, while repayments to non-residents totaled 70.61 million euros, related to existing credit arrangements. Debt repayments under old foreign currency savings totaled 0.01 million euros. Interest payments amounted to 31.57 million euros, including 1.67 million euros paid to residents primarily for domestic bank loans and bonds, and 29.90 million euros to non-residents, mainly for bonds, syndicated loans, and other commercial debts.
State guarantees issued to domestic and foreign creditors resulted in debt totaling 125.64 million euros or 1.59 percent of GDP at the end of March. Domestic creditor guarantees accounted for 16.45 million euros (0.21 percent of GDP), and foreign creditor guarantees for 109.19 million euros (1.38 percent of GDP).
