Montenegro is not expected to face major public debt issues this year or next, but 2027 poses a significant challenge when over €1 billion in debt matures, according to CBCG Vice Governor Nikola Fabris.
At a parliamentary session, Fabris reported that Montenegro’s gross public debt at the end of last year stood at 61.32%, slightly above the Maastricht criterion of 60%, but still favorable compared to most Eurozone countries.
Debt repayments for this year and next are manageable, with funds secured through eurobond issuance. However, 2027 will require careful fiscal planning due to the large debt maturity. Fabris emphasized the importance of keeping debt below 60% to align with potential EU accession in 2028 and Eurozone entry by 2030.
Regarding inflation, annual inflation in July reached 4.5%, above the desired level but not critical. Fabris noted that Montenegro’s small, highly open economy is vulnerable to both domestic imbalances and external global pressures.
He highlighted that the Montenegrin monetary system lacks traditional tools like interest rate adjustments or open market operations, limiting the CBCG’s ability to control inflation directly. Fabris praised the government’s “Stop Inflation” program and suggested that improving competition policies, particularly addressing potential market dominance by retail chains, could help stabilize prices.
