At the conclusion of the previous year, Montenegro’s total public debt reached 4.57 billion euros, which corresponds to 61.32 percent of the nation’s gross domestic product (GDP).

The Government disclosed that a report detailing public debt as of December 31 of the past year was officially adopted in today’s session.

“As of December 31 last year, the total public debt stood at 4,573.83 million euros, equivalent to 61.32 percent of GDP,” the announcement indicated.

According to the report, after accounting for the Ministry of Finance’s deposits (including 38,477 ounces of gold), which totaled 385.36 million euros at the end of last year, Montenegro’s net public debt amounted to 4,188.48 million euros, or 56.15 percent of GDP.

“When comparing to the end of 2023, public debt increased in absolute terms by 447.03 million euros and by 1.05 percentage points relative to GDP,” the Government noted.

The Government reminded that last year, a bond was issued on the international market totaling 750 million US dollars, or 687.76 million euros after a hedging arrangement was completed.

Additionally, a development policy loan of 180 million euros was concluded, the Government reported.

“During this period, funds amounting to 74.37 million euros were withdrawn from previously signed credit agreements,” the statement added.

It also mentioned that regular debt repayments on existing credit commitments totaled 495.55 million euros during the same timeframe.

“In terms of borrowing instruments, the largest portion of the debt at the year’s end was related to government bonds issued on the international market, which accounted for 53.3 percent of public debt,” the Government said.

The report notes that four issues of Montenegrin government bonds are listed on the international capital market, with one issue in US dollars amounting to 750 million USD, and the remaining three denominated in euros totaling 1.75 billion euros.

On the domestic market, one issue of government bonds is listed for 50 million euros.

“Total state debt (excluding deposits) as of December 31 last year reached 4,514.77 million euros, or 60.53 percent of GDP. Total state debt including deposits stood at 4,129.42 million euros, or 55.36 percent of GDP,” the statement clarified.

External debt was reported at 1,183.48 million euros, or 56.08 percent of GDP, while internal debt amounted to 331.3 million euros, or 4.44 percent of GDP.

“State debt includes a portion of local government debt, amounting to 34.21 million euros, based on contracts the Ministry of Finance entered into with international creditors, subsequently forwarded to municipalities as transfer loans,” the Government noted.

In comparison to the end of 2023, an overall increase in state debt of 454.87 million euros was observed, stemming from an increase in external debt by 666.19 million euros and a decrease in domestic debt by 211.32 million euros.

During today’s session, the Government also adopted a report on the execution of the capital budget for the previous year.

The Government indicated that 251.65 million euros were expended on capital budget implementation last year, constituting 106 percent of the total amount planned in the rebalance, which is 62.63 million euros more than the same period in the previous year.

“Of this amount, EUR 113.72 million came from general budget revenues, EUR 29.03 million from loans, while EUR 12.6 million was funded by EU donations (IPA projects) and EUR 0.28 million from a donation from the European Bank,” the statement noted.

The Government added that 131.31 million euros were processed for projects overseen by the Capital Projects Administration, representing 108 percent of the total planned amount, which is 24.24 million euros more than the previous year.

“Out of this amount, EUR 113.71 million was funded from budget resources, EUR 12.6 million from loans, and EUR X million from EU donations,” they stated.

A total of 120.34 million euros, or 104 percent of the total planned amount, was allocated for projects overseen by the Transport Administration, which is 38.39 million euros more than last year.

Out of the aforementioned amount, 96.02 million euros were provided from budget funds, and 24.03 million euros were sourced from loans.

“For the purpose of resolving property and legal matters, 28.52 million euros were disbursed from budget funds last year, of which 27.36 million euros were directed toward the second section of the highway, with 22.49 million euros coming from earmarked revenues under the economic citizenship program,” the statement explained.

In relation to the ongoing construction of the Bar-Boljare highway, Monteput completed the pre-qualification process for selecting contractors and professional oversight for building the second section from Mateševo ​​to Andrijevica, adhering to EBRD financier protocols and FIDIC conditions, along with Montenegro’s legal regulations.

The Government noted that the evaluation of applications and the approval process by the EBRD are currently ongoing, after which the selection of the most favorable bidder will proceed.

The Government approved amendments to the Proposal for Amendments to the Law on Civil Servants and State Employees.

“The core of the proposed amendments clarifies that administrative body heads, senior management personnel, expert management personnel, and professionals may possess at least a VI level of educational qualification or a higher qualification level, rather than only those with a VI level of qualification,” the statement concluded.

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