As of September 2024, Montenegro’s total public debt amounted to €4.46 billion, which represents 60.19% of the country’s gross domestic product (GDP). After accounting for the Ministry of Finance’s deposits, the net public debt stood at €3.85 billion, or 51.86% of GDP.
Deposits held by the Ministry of Finance, including 38,480 ounces of gold, amounted to €617.94 million, with the value of the gold estimated at €90.69 million.
The consolidated debt of local governments by the end of September reached €101.35 million. In the third quarter, the total public debt was reduced by €76.08 million, a decrease resulting from regular debt repayments and no new borrowing during that period. Repayment of principal on state debt during the third quarter totaled €87.42 million.
Montenegro’s external debt decreased by €45.25 million, amounting to €4.05 billion, while internal debt stood at €356.48 million, a reduction of €30.2 million compared to June.
In terms of debt structure, external debt dominates with a share of 91.9%, and the majority of the debt is denominated in euros (99%). The interest rate on most of the debt is fixed (84.5%), contributing to the stability of the debt portfolio.
The Ministry of Finance issued guarantees worth €135.52 million in total, including both domestic and foreign creditors. Of these, €17.95 million were guarantees for domestic creditors, while €117.57 million were issued for foreign creditors.
In the third quarter, the Ministry concluded a guarantee agreement for a loan with the European Bank for Reconstruction and Development (EBRD) to finance the construction of the 400/110 kV Brezna Substation, amounting to €28 million.
Additionally, Montenegro’s credit rating was upgraded twice this year by S&P Global Ratings, improving the outlook from stable to positive in March, and increasing the rating from B to B+ in August. Moody’s also raised the country’s credit rating in September for the first time since 2013, from B1 to Ba3 with a stable outlook, signaling improved economic stability and positive prospects for future investments.
