Montenegro faces debt repayments exceeding €1.5 billion over the next three years, with the largest amount due in 2027, when the budget must allocate approximately €1.036 billion. This peak repayment is mainly driven by the €750 million bond issued in 2020 shortly after Milojko Spajić became finance minister.
In 2026, debt servicing is projected at around €325 million, covering regular repayments on loans from China’s Exim Bank (2014), a domestic bond maturing in 2019 (€50 million), World Bank loans from 2018 and 2020, and a Deutsche Bank loan from 2023. For 2027, repayments will include the 2020 bond (€750 million), alongside ongoing loan payments. In 2028, approximately €216 million is needed for debt servicing.
State debt is expected to rise from €4.5 billion at the end of 2024 to an estimated €5.9 billion by the end of 2028. Annual increases in absolute debt range between €254 million and €410 million over these years, while the debt-to-GDP ratio is projected to grow modestly.
The projections are based on Montenegro’s Fiscal Strategy 2025–2028, indicating borrowing will focus primarily on debt repayment and financing the capital budget. Key debt obligations include foreign and domestic bonds, loans for the Bar-Boljare highway from China’s Exim Bank, World Bank arrangements from 2018 and 2020, and the Deutsche Bank loan from 2023.
Notably, significant one-off repayments include €500 million in eurobonds due in April 2025, €50 million domestic bonds maturing in 2026, and the €750 million eurobond maturing in 2027.
To secure funds for 2026 and 2027 repayments, Montenegro’s Ministry of Finance is negotiating with the World Bank for a policy-based guarantee (PBG) to facilitate up to €300 million in commercial bank financing.
Capital investments and growth plans will influence debt levels, with infrastructure and development projects expected to require around €350 million annually. Montenegro has also been allocated approximately €383 million under the EU Instrument for Reform and Growth for the Western Balkans, of which two-thirds are loans for development and infrastructure, and one-third are grants. These projects are to be completed by the end of 2028.
