The total public debt of Montenegro at the end of September amounted to €4.76 billion, or 58.59% of the country’s GDP, according to the quarterly report of the Ministry of Finance on state and public debt. This means that Montenegro’s public debt remained within the Maastricht criteria, which stipulate that public debt must not exceed 60% of GDP.
Taking into account the Ministry of Finance’s deposits — including 38,477 ounces of gold — Montenegro’s net public debt at the end of September stood at €4.17 billion, or 51.4% of GDP.
Many EU member states are significantly more indebted than Montenegro. According to data published earlier this year, Greece remains the most indebted European country, with public debt exceeding 160% of GDP. Italy’s debt reached 137% of GDP, France 110%, while Spain’s debt climbed to 107% during the year.
State debt
The report states that total state debt at the end of September amounted to €4.7 billion, or 57.91% of GDP. When deposits are included, the net state debt totalled €4.12 billion, or 50.73% of GDP.
Deposits at the end of September amounted to €583.55 million, including 38,447 ounces of gold valued at €125.55 million as of September 30, equal to 7.18% of GDP.
Montenegro’s external debt reached €4.4 billion, or 54.37% of GDP, which is €41.36 million less than at the end of June. The reduction in external debt during Q3 2025 was primarily due to the absence of new loans.
At the same time, €18.75 million was withdrawn from previously signed credit arrangements for various infrastructure and development projects, while external debt repayments totalled €60.08 million, resulting in an overall decrease in external debt.
The report notes that bonds issued on the international market hold the largest share of external debt.
Montenegro’s domestic debt at the end of September stood at €287.63 million (3.54% of GDP), which is €13.14 million less than at the end of June. The decline was due to regular debt servicing and no new domestic borrowing. Domestic debt consists largely of loans from commercial banks.
Total borrowing in Q3 amounted to €18.75 million, fully reflecting withdrawals from earlier credit arrangements.
Two credit agreements were signed in Q3, although without any withdrawals:
- A €200 million loan from the EBRD for the construction of the second section of the Bar–Boljare highway (Andrijevica–Mateševo),
- An €8 million loan from the World Bank for the modernization of Montenegro’s financial infrastructure and alignment with SEPA standards (TIPS Clone Project).
Local government debt at the end of September totalled €55.01 million.
Debt structure
External debt accounts for 93.9% of total state debt, while domestic debt accounts for 6.1%, similar to levels in the previous quarter.
Only 0.3% of state debt is denominated in non-euro currencies, while 99.7% is in euros — attributed to currency swaps conducted for the Exim Bank of China highway loan and for the 2024 USD eurobond.
State debt is predominantly fixed-rate, with 85.8% of obligations carrying fixed interest rates. Variable-rate borrowings, mainly tied to EURIBOR, make up 14.2%.
Debt repayment
During Q3 2025, Montenegro repaid €68.1 million in principal to both domestic and international creditors:
- Principal repaid to domestic creditors: €8.02 million
- Principal repaid to international creditors: €60.08 million
Interest payments totalled €30.91 million, including €1.45 million to domestic banks and €29.46 million to international creditors, mostly related to project loans and commercial borrowing.
State-guaranteed debt stood at €121.18 million (1.5% of GDP):
- Guarantees to domestic creditors: €13.36 million
- Guarantees to international creditors: €107.83 million
In recent days, the Government has taken on an additional €500 million in borrowing — including a €450 million loan from several international banks and a €50 million bond issuance aimed at citizens and companies. The Ministry of Finance confirmed that the bond issuance closed with a result of €49.87 million.
