As of the end of September, blocked corporate debt in Montenegro has surged to €1.755 billion, indicating ongoing financial challenges within segments of the business sector despite the nation experiencing economic growth.
Data from the Central Bank reveals that 18,058 companies and entrepreneurs had blocked accounts, marking an increase of 138 from the previous month.
During September, debt under enforcement rose by approximately €32.83 million, equating to a 1.91% increase.
The majority of this issue is attributed to long-term arrears. Specifically, those companies and entrepreneurs with accounts blocked for over a year owed around €1.733 billion, which constitutes 98.77% of the total blocked debt.
The concentration of debt is particularly significant among the largest debtors, with the top ten entities holding approximately €732.4 million, or 41.73%, of the total blocked amount.
Montenegro has about 71,449 registered business entities, suggesting that roughly one quarter are recorded as having blocked accounts, although many are classified as inactive.
This data indicates that the overall debt figure reflects both current business difficulties and a substantial accumulation of legacy liabilities from companies that have ceased normal operations.
This distinction is crucial for the banking sector; Montenegro’s banks remain highly liquid and profitable, meaning that blocked corporate accounts do not necessarily lead to equivalent loan losses.
Nonetheless, persistent arrears can undermine payment discipline, complicate recovery efforts for creditors, and elevate risks for suppliers and smaller businesses reliant on timely payments.
The increasing total underscores that Montenegro continues to grapple with a significant volume of unresolved corporate liabilities, even as new businesses emerge and investment and credit activities expand.
