On 9 July, Montenegro’s government announced the completion of 34 out of 41 reform steps, representing 83% of the obligations outlined in the latest semi-annual Reform Agenda review. This progress enables the disbursement of €97.3 million in EU support aimed at enhancing private-sector development, digitalisation, energy transition, human capital, and the rule of law. This financial support marks a significant shift towards tangible financing flows in the context of EU integration, moving beyond mere legislative commitments.
Additionally, the government sanctioned a new financing agreement between the Council of Europe Development Bank (CEB) and the Development Bank of Montenegro. Under this arrangement, the CEB will extend a €30 million loan that will cover up to 70% of eligible expenditures for a programme valued at €43 million. The funding is designated for both investment and working capital, prioritizing companies located in less-developed municipalities, women-led businesses, young entrepreneurs, and start-ups.
This initiative aims to diversify Montenegro’s development-finance landscape at a time when commercial bank lending predominantly focuses on property, trade, tourism, and short-term liquidity needs. The success of this programme will hinge on the Development Bank’s ability to translate this funding into productive fixed investments rather than mainly addressing working-capital pressures. Observers will also monitor regional allocations closely, as northern Montenegro has historically seen lower representation in terms of company revenue and private investment.
On the same day, several regulatory measures were adopted concerning food safety, chemical management, and the restructuring of the Geological Survey into a public institution. This restructuring could enhance the quality and accessibility of geological data essential for infrastructure, quarrying, mining, water, and energy projects. However, investors will still require project-specific data that comply with lender and environmental due diligence standards.
