As part of the Growth Plan, the European Union has allocated a total of €383.5 million for Montenegro, of which €110.1 million are grants, and €273.4 million are concessional loans, according to the Ministry of Finance (MF) announcement today.
By signing the Loan Agreement with the European Union (EU), the Government of Montenegro, through coordination with the Ministry of Finance, has taken a crucial step toward drawing the first funds from the EU Growth Plan, which brings a record €383.5 million for reforms, economic development, and institutional strengthening.
“In very successful joint coordination between the Ministry of Finance and the Ministry of European Affairs, and based on the comprehensive legal framework and key steps by the relevant state institutions in the previous half-year, Montenegro has confirmed its focused commitment to European integration and sustainable development,” the Ministry of Finance stated in the announcement.
The Ministry of Finance also officially submitted the request for the payment of the first tranche from the available financial framework of the Growth Plan to the European Commission, in line with the achieved and measurable results of Montenegrin institutions that are recognized as the main drivers of the comprehensive reform process.
As part of the Growth Plan, the European Union has allocated a total of €383.5 million for Montenegro, with €110.1 million in grants and €273.4 million in concessional loans. These funds will be used to implement key reforms, improve the business environment, strengthen the rule of law, and enhance the standard of living for citizens. The loan funds will be available in several periodic tranches, which will be disbursed semi-annually until 2028. The amount of each tranche will depend on the further progress in meeting the obligations set out in the 2024-2027 Reform Agenda. With a repayment period of up to 40 years and a grace period of up to 10 years, the plan ensures stable and long-term financing for priority development projects.
According to the Ministry of Finance, this financial support, as a candidate country, also means a faster path to the EU, stronger institutions, a safer business environment, and a higher quality of life for all citizens.
“With this program, Montenegro not only becomes more economically competitive but also demonstrates its readiness to join the European community. This progress serves as a catalyst for future processes within the management structures and the available pre-accession EU financial support, through the IPA III financial perspective, and for creating a stable governance framework for the absorption of EU funds once Montenegro becomes a member of the European Union,” the Ministry of Finance concluded.
