Montenegro’s Prime Minister Milojko Spajić announced that citizens can expect sustainable increases in salaries and pensions, justified investments in infrastructure, and a decrease in interest rates on loans. This news follows Moody’s decision to upgrade Montenegro’s credit rating for the first time in a decade.
The rating has improved from B1 to Ba3, reflecting sound economic policies. Spajić highlighted the significant transformation in Montenegro’s economy since 2014, when it had the same rating under a more conservative policy framework. Despite increasing salaries and pensions and making substantial capital investments in highways and railways, the credit rating has risen.
The capital budget has grown from 75 million euros in 2014 to 237 million euros today, with similar increases in the health and education budgets. Average net salaries, which were 477 euros, are expected to reach around 1,000 euros by October, while the minimum pension has risen from 100 euros to 450 euros, and the average pension from 273 euros to approximately 565 euros.
Spajić noted that the recovery of Montenegro’s economy is also evident in international investors’ renewed confidence in its bonds. After a decline in bond prices due to political instability in 2022, prices have been steadily rising, reaching nearly 94 cents, indicating strong trust in the country’s budget and development projects.
The increase in credit rating and bond prices is expected to provide direct benefits to citizens. Future borrowing for Montenegro will be significantly cheaper, saving around 30 million euros annually. Lower interest rates on loans will also mean reduced payments for cars, real estate, and other consumer goods. This upgrade positions Montenegro as a viable option for serious investors, signaling that it is a safe place for investment, Spajić concluded.
