At the end of June, Montenegro’s total public debt amounted to €4.8 billion, or 60.82% of the country’s gross domestic product (GDP), according to the quarterly report on state and public debt published by the Ministry of Finance. When the Ministry’s deposits are taken into account, including 38,477 ounces of gold, Montenegro’s net public debt stood at €4.24 billion, or 53.65% of GDP.
The total state debt at the end of June reached €4.75 billion, equivalent to 60.11% of GDP. After considering deposits, the net state debt amounted to €4.19 billion, or 52.94% of GDP. Deposits at the end of June totaled €567.76 million, including 38,447 ounces of gold valued at €108.08 million, representing 7.17% of GDP.
Montenegro’s total external debt stood at €4.46 billion, or 56.31% of GDP, which is €329.31 million higher than at the end of the first quarter (March 31). The increase in external debt during the second quarter resulted from a net effect of new borrowings through the issuance of foreign bonds worth €850 million and withdrawals from previously signed loan arrangements, offset by regular debt repayments. The report states that the largest portion of external debt consists of bonds issued on the international market in previous years.
The total domestic debt at the end of June was €300.77 million, or 3.8% of GDP, representing a decrease of €20.29 million compared to March, mainly due to regular repayments. The debt guaranteed by the state for domestic creditors amounted to €14.62 million, or 0.18% of GDP, while guarantees issued to foreign creditors totaled €111.31 million, or 1.41% of GDP. The report notes that the largest share of domestic debt is held by loans from commercial banks.
During the second quarter of this year, total new borrowing reached €911.71 million. Of this amount, €868.62 million related to new loans contracted during the quarter, while €43.09 million came from withdrawals under previously concluded credit arrangements. The Ministry recalled that several major borrowings took place in the second quarter of 2025, including the issuance of €850 million in seven-year bonds on international markets at an interest rate of 4.875%, completed in early April.
Other borrowings included an EU reform and growth support program for Montenegro totaling €273.44 million, of which €12.49 million was drawn in the second quarter. Additional agreements included a €20 million loan from CKB Bank for the purchase of military logistics vehicles, with €6.13 million drawn during the quarter, and an €18 million European Investment Bank loan for education reform, from which no withdrawals were made during this period.
According to data provided by local governments, total municipal debt at the end of June amounted to €55.86 million, or 0.71% of GDP. In the structure of state debt, external borrowing dominates with 93.7% of the total, while domestic debt accounts for 6.3%. Compared to the end of the first quarter, this ratio remained largely unchanged.
At the end of the second quarter, only 0.29% of the existing state debt was denominated in non-euro currencies—0.23% in US dollars and 0.06% in Special Drawing Rights (SDR)—while 99.71% of the debt was euro-denominated, consistent with previous data. The Ministry emphasized that the favorable currency composition of Montenegro’s debt results from cross-currency swap arrangements linked to the Exim Bank of China loan for the Bar–Boljare highway and last year’s dollar-denominated bond issue.
Fixed-rate borrowing accounted for 85.5% of the total state debt, ensuring a stable debt portfolio, while 14.5% of the debt carried variable interest rates, primarily tied to the EURIBOR benchmark.
During the second quarter, Montenegro repaid €594.91 million in principal and past-due obligations to both domestic and foreign creditors. Of this amount, €20.25 million went to resident creditors, while €574.65 million was paid to non-residents, primarily covering international bonds and existing credit arrangements. Interest payments totaled €49.04 million, including €5.41 million paid to domestic creditors (mainly on loans and domestic bonds) and €43.62 million to foreign creditors (mainly related to bonds, syndicated loans, and other commercial borrowings).
The total amount of guarantees issued by the state to both domestic and foreign creditors stood at €125.93 million, representing 1.59% of GDP. Of this, €14.62 million corresponded to guarantees issued to domestic creditors, while €111.31 million was related to guarantees issued to international creditors, according to the Ministry of Finance report.
