The Montenegrin Government has approved a Decision to amend the previous Decision regarding the establishment of part of the Mixed Commission for executing the Basic Agreement between Montenegro and the Holy See, as well as a Decision to amend the establishment of the Council for Monitoring the Implementation of the Judicial Reform Strategy 2024–2027..

During the session led by Prime Minister Milojko Spajić, the Government also adopted Information regarding the conclusion of the Loan Agreement between the European Union and Montenegro, which outlines special arrangements for EU support to Montenegro through the Reform and Growth Instrument, and accepted the Loan Agreement.

Following the Government session, it was announced that the European Commission’s growth plan anticipates a combination of grants and concessional loans amounting to six billion euros for the 2024-2027 period, with Montenegro allocated approximately 383.5 million euros; of that, around 110.1 million euros will be in grants, and about 273.4 million euros will be in soft loans.

“The loan agreement specifies the rights and obligations of the respective parties and the terms under which the loan support will be provided. This loan facility will be dispensed in several periodic tranches, scheduled for disbursement every six months until the first half of 2028. The amounts allocated will be contingent on meeting the requirements set forth by the Reform Agenda. It is crucial to note that accessing pre-financing and periodic tranches is contingent upon the formal and legal prerequisites, specifically the ratification of both the Agreement on Accession to the Instrument and the Loan Agreement,” the announcement stated.

The total pre-financing amount could reach up to seven percent of the total funds available for Montenegro, which translates to approximately 26.8 million euros.

“Pre-financing incorporates both non-repayable financial aid and loan support. The total loan funds available amount to EUR 273,436,161, with up to EUR 19,140,531 designated as part of the pre-financing loan funds. Of the total committed loan funds, 34.75 percent pertains to those loan funds channeled through a collective fund established under the Western Balkans Investment Framework. To facilitate loan support financing, the Commission will initiate a bond issue or other relevant financial transactions either short-term or long-term, on behalf of the EU. Consequently, loans will be offered under favorable terms with a maximum repayment period of 40 years from the signing date of the Loan Agreement, incorporating a grace period of up to 10 years, meaning principal repayment will commence in 2034, evenly distributed across the mortgage duration,” the report detailed.

The Government also adopted Information on the fulfillment of obligations related to the final benchmark for negotiation Chapter 2 – Freedom of Movement of Workers.

“This chapter is crucial for Montenegro’s negotiations with the European Union, focusing on the rights of EU citizens and their families to freely move, reside, and work within the EU. It addresses equal treatment for EU citizens compared to domestic citizens regarding access to the labor market, social services, healthcare, and other rights. The European Commission has indicated that the closure of Chapter 2 is expected in the second quarter of 2026, necessitating fulfillments of the requirements set forth in the final benchmark, which states: ‘Montenegro should demonstrate adequate structures and capacity for effective implementation of the acquis surrounding the freedom of movement of workers by the time of EU accession’.”

The Government disclosed that Information regarding the status of the “Đurđevića Tara” bridge reconstruction project has been adopted, alongside the Proposal to commence negotiations and conclude a Supplementary Agreement on the fund donation agreement for the bridge reconstruction project on the Tara River in Montenegro, as supported by China.

“The Embassy of the People’s Republic of China in Podgorica has submitted a Supplementary Agreement detailing the financial contribution for the bridge reconstruction project, laying out that the total cost incurred by the Chinese side is 51.8 million Chinese yuan. This agreement also states that SHANDONG LUQIAO GROUP CO., LTD CHINA has been selected to serve as the Main Contractor for the bridge’s reconstruction. The works are scheduled to commence in May 2025, with an eight-month construction timeline (excluding the winter season), with the Construction Plan and the formal initiation of work to be determined and announced later…”

The Government has also approved the First Semi-Annual Report on the Implementation of Montenegro’s Reform Agenda for the EU Reform and Growth Instrument 2024-2027.

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