450 million euros from international lenders - Montenegro receives loan to expand fiscal reserves
Montenegro's Ministry of Finance signed a 5-year loan agreement of 450 million euros with a group of foreign banks to help expand the country's fiscal reserves for 2026 and 2027, when the government must repay a significant amount of debt.
The funds are provided at a six-month Euribor plus 2.5%, which is equivalent to an interest rate of 4.5%, under current market conditions. The loan must be repaid every six months.
The ministry noted that Montenegro's state financing needs in the next two years total 2.2 billion euros, of which 1.6 billion euros will go to servicing maturing debt. The remaining 600 million euros will finance planned capital and development projects of strategic importance.
In 2027 alone, the government will face almost 1.2 billion euros of maturing debt.
"The timely provision of fiscal reserves represents a key step in guaranteeing the stability and continuity of public finances in this two-year period," said the Ministry of Finance.
The Montenegrin government has said it is facing a deficit of 1.14 billion euros that can be covered by deposits, existing loan agreements and new borrowing. The state can borrow up to 900 million euros to cover the budget deficit through new loans this year and can borrow an additional 500 million euros to refinance existing debt and expand fiscal reserves for 2026 and 2027.
In March, the Ministry of Finance sold an 850 million euro
According to the 2026 draft budget, Montenegro will have to pay 710 million euros to service maturing debt and finance capital expenditures. In particular, a total of 384 million euros of debt will mature next year. To finance the above obligations, the government will use the deposits already accumulated for this purpose in 2025 and will take on new debt of up to 500 million euros.
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