The Montenegro Stock Exchange experienced positive momentum this week, bolstered by Moody’s upgrade of Montenegro’s credit rating from B1 to Ba3 for the first time in a decade. The MNSE10 index, which tracks the top ten companies, rose 1.3% to reach 1,035.68 points, while the MONEX index increased by 2% to 15,741.85 points. Trading volume surged to €212.65 thousand, marking a 3.2-fold increase from the previous week.
According to the Finance Ministry, this credit rating upgrade reflects robust medium-term growth prospects and improved fiscal stability, driven by reduced public debt and diminished fiscal risks linked to the completion of the Bar-Boljare highway. Moody’s highlighted that significant public and private investments, along with the implementation of EU structural reforms under the New Growth Plan for the Western Balkans, support strong growth projections.
Prime Minister Milojko Spajić noted that this rating increase confirms the sustainability of wage and pension increases, validates infrastructure investments, and signals expected reductions in loan interest rates. He emphasized that Montenegro’s economic landscape has fundamentally changed since 2014, when it held the same rating.
Among notable stock movements, shares of the Ulcinj Riviera Hotel and Tourist Company surged 31.8% to €5.8, while Absolute, a Bar-based company, rose 12.5% to €1.35. The Mortgage Bank’s shares increased by 5.4% to €6.9, and the Montenegrin Electricity Transmission System (CGES) saw a slight uptick to €1.41.
Additionally, CGES CEO Ivan Asanović and Enrico Casari from Alcazar Energy signed a connection agreement for the Bijela wind farm, marking a key step towards renewable energy development. The wind farm is slated to connect to the Brezna substation, with commercial operations expected to commence in 2027.
Meanwhile, shares of the Port of Adria rose 20.4% to 18.3 cents, whereas stocks of the Morača Business Logistics Center fell 10% to €4.5, and Montenegrin Telekom dropped 1.9% to €2.11.
The Assembly also reapproved amendments to VAT, excise duties, and mandatory social security contributions, which had previously been returned by President Jakov Milatović due to concerns about potential price hikes. This legislative framework is essential for implementing the “Europe Now 2” program.
The European Bank for Reconstruction and Development (EBRD) has revised its economic growth forecast for Montenegro, raising it by 0.3% to 3.8% for this year. The EBRD anticipates a growth rate of 2.9% for the next year, consistent with earlier projections, and highlights expected wage increases this year along with further pension hikes early next year as part of the “Europe Now 2” initiative.
