The Board of Executive Directors of the World Bank Group has approved an 80 million euro loan to support Montenegro in enhancing its fiscal sustainability and promoting sustainable development.
According to the World Bank, the first loan for policy-based financing aimed at resilient fiscal and sustainable development in Montenegro (DPF) is designed to assist in reforms that improve fiscal sustainability through increased revenue, better expenditure oversight, reduced fiscal risks, and the promotion of sustainable development by tackling environmental degradation and climate change challenges.
Kristofer Sheldon, head of the World Bank office for Bosnia and Herzegovina and Montenegro, emphasized that this initiative is vital for supporting Montenegro’s efforts to build a more sustainable and resilient future.
“By prioritizing fiscal sustainability and sustainable development, we are aiding Montenegro in making progress on key reforms that will benefit both its economy and the environment,” Sheldon stated.
This new program aligns closely with Montenegro’s objectives for EU accession, its Economic Reform Program through 2026, and its climate commitments under the 2015 Paris Agreement.
The program directly facilitates Montenegro’s transition to a greener economy, which is anticipated to generate new jobs, boost competitiveness, enhance living standards, and improve resilience to climate-related risks.
The World Bank’s support for this project is further bolstered by parallel financing from the French Development Agency (AFD) and the OPEC Fund for International Development, each contributing 50 million euros. This collaboration reinforces the World Bank Group’s commitment, as articulated in the recently adopted Country Partnership Framework for the period leading up to 2029, to assist Montenegro in achieving its fiscal and sustainable development objectives.
