Montenegro fiscal and debt management

Montenegro’s Ministry of Finance has secured 400 million euros through an international syndicated credit arrangement to establish a fiscal reserve for 2027 and 2028. This funding is intended to mitigate refinancing risks and address significant debt obligations, specifically the nearly 1.2 billion euros in repayments due in 2027. The credit arrangement carries a seven-year maturity with an interest rate of six-month EURIBOR plus a 2.5 percent margin.

In related budgetary actions, the government has authorized the redirection of funds from the current budget reserve to the State Audit Institution (DRI) to improve the material status of state auditors. New regulations regarding job titles are set to take effect in October, with plans to align auditors’ salaries with those of judges starting in 2027.

Recent discussions have highlighted growing fiscal pressures. Member of Parliament Boris Mugoša noted that Montenegro faces over three billion euros in principal and interest repayments between 2027 and 2029, calling for a dialogue to balance debt obligations with sustainable increases in pensions and wages.

Concurrently, officials from the Statistical Office of Montenegro (MONSTAT) and the Fiscal Council met to discuss enhancing institutional cooperation through a potential formal agreement. The Fiscal Council noted MONSTAT’s progress in temporarily closing Chapter 18 regarding Statistics as a milestone for the country’s European integration process.