Government to discuss new loan of 500 million EUR for debt repayment and investments

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The Government of Montenegro will discuss a proposal for a new loan of 500 million EUR at its session, confirmed multiple sources within the government to the Dana portal. The proposal was reviewed by the Economic Policy Commission (KEP), which will forward it to the government for final approval.

Finance Minister Novica Vuković announced the new borrowing while presenting the 2025 budget, explaining that the majority of the funds will be allocated for debt repayment.

“In 2025, we plan to borrow 900 million EUR to settle existing debt amounting to 821 million EUR,” said Vuković.

Montenegro is expected to borrow a total of 3.05 billion EUR from now until the end of 2027.

“Montenegro needs to repay old loans worth 2.14 billion EUR over this and the next two years, while simultaneously borrowing 3.05 billion EUR. The new borrowing will exceed the amount needed for repaying old debts by 900 million EUR. This difference will be used for capital investments and budget reserves,” states the Debt Management Strategy.

The net public debt at the end of last year stood at 4.12 billion EUR.

According to the Strategy, it is expected that the debt will rise to 4.6 billion EUR by the end of this year, reach 5.04 billion EUR by the end of 2026, and 5.47 billion EUR by the end of 2027.

In other words, the net public debt will increase by 1.35 billion EUR over the next three years.

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