The state-owned shipping firm Barska plovidba encountered a setback on July 10, failing to secure the necessary shareholder majority to implement a new statute and appoint its board of directors. Approximately 54% of shareholders supported the resolutions; however, a two-thirds majority was required for approval. The deadline for aligning with the new Companies Law had already lapsed on June 15, leading to the postponement of the next shareholder meeting to September 1.
Management has expressed concerns that the lack of compliant corporate governance could hinder decision-making processes and lead to financial repercussions. This situation is particularly critical given that Barska plovidba holds significant multimillion-euro debt obligations to the Export-Import Bank of China, backed by a state guarantee.
While there is currently no confirmed risk of payment default, the governance issues pose a threat to the company’s operations, which could impact contracting and financing decisions as well as vessel operations. The ongoing delays may also affect the government’s management of its contingent liabilities associated with the company.
In the broader economic context, Montenegro’s market remains optimistic, buoyed by strong tourism demand and healthy domestic banking liquidity alongside access to European development funds. However, a key challenge lies in transforming announced funding and reform initiatives into effective, commercially viable projects. The management of energy reserves, utility financing, and governance within transport companies will be critical areas of focus as Montenegro approaches the third quarter.
