According to recent data from the Central Bank of Montenegro, the financial landscape in the country paints a picture of growing indebtedness among its citizens. More than 150,000 individuals are currently grappling with debt owed to banks, collectively amounting to a staggering €1.78 billion.
This trend is particularly concerning given that the average salary no longer suffices to cover basic living expenses. Consequently, many citizens are compelled to turn to credit to finance essential needs or pursue larger investments.
As of the end of March, the number of citizens indebted to banks stood at nearly 153,000, reflecting a notable 10% increase compared to the same period last year. Analysis of the types of loans reveals that almost half of these debts are attributed to housing, while approximately one-third consists of personal loans, with mortgage loans making up the remaining eight percent.
Economic experts like Mirza Mulešković emphasize that while there has been a rise in wages, it has paradoxically led to heightened levels of indebtedness. This suggests a fundamental mismatch between income levels and the cost of living, prompting individuals to rely on borrowing to bridge the gap.
Moreover, Mulešković underscores a broader societal trend of economic stratification, where a significant segment of the population struggles to meet basic needs on their income alone. Conversely, a smaller but affluent portion of society has the means not only to cover expenses comfortably but also to engage in savings practices.
In light of these findings, it is evident that Montenegro faces significant economic challenges, necessitating a closer examination of income distribution, borrowing practices, and broader financial policies to foster sustainable financial health for its citizens.
