Montenegro faces rising debt and widening current account deficit

Montenegro is experiencing significant economic pressure as blocked accounts for companies and entrepreneurs reached 1.78 billion euros at the end of September. According to Central Bank of Montenegro data, the total debt increased by 31.43 million euros compared to the previous month, with 21,294 debtors currently facing account freezes.

The debt is highly concentrated; the top 50 debtors account for 58.88 percent of the total blocked amount, totaling 1.05 billion euros. A critical portion of this issue involves long-term freezes, as 20,272 debtors have had their accounts blocked for more than a year, representing 98.78 percent of the total debt.

Additionally, a European Commission report indicates that Montenegro's current account deficit reached 20.9 percent of GDP for the 12 months ending in June 2026. Foreign direct investment inflows, at 6 percent of GDP, cover less than one-third of this external deficit. The report also highlights deteriorating public finances, driven by budget expenditures growing faster than revenues.