Montenegro’s public debt is comparable to that of Northern Macedonia, Croatia, and Slovakia, while many EU members face higher levels of debt.

Analysis by The Banker portal indicates that although Montenegro’s debt is significant within the Western Balkans, it does not rank among the highest in Europe. Bosnia and Herzegovina trails with a debt level of about 28% of GDP, whereas Estonia sits at the lower end of the European spectrum with approximately 20% of GDP. Conversely, Greece maintains the highest public debt, exceeding 160% of GDP.

As of March 31, 2025, official data from the Ministry of Finance indicates that Montenegro’s total public debt reached EUR 4.508 billion, which is 56.93% of its GDP. After accounting for deposits and gold reserves of around EUR 111 million, the net debt amounts to EUR 4.208 billion, or 53.15% of GDP.

The external debt constitutes a significant portion, totaling EUR 4.13 billion (52.15% of GDP), while internal debt stands at EUR 321.06 million (4.05% of GDP). Compared to the end of 2024, the percentage of public debt relative to GDP has decreased due to robust nominal economic growth and partial repayments made in the first quarter of 2025.

Most obligations arise from bonds in the international market, which account for 53.3% of the total public debt. The state occasionally borrows from the domestic market through the issuance of treasury bills and bonds, though to a lesser extent.

Comparative Overview: Region and Europe

With a public debt of 56.9% of GDP as of March 2025, Montenegro remains one of the most indebted countries in the Western Balkans. Albania and Northern Macedonia follow closely, each with debt levels around 55-56% of GDP. In contrast, Serbia’s debt is notably lower at approximately 47% of GDP, while Bosnia and Herzegovina recorded the least debt at about 28% by the end of 2024.

Within the broader European context, Croatia’s public debt (approximately 57.6% of GDP by late 2024) is the closest to Montenegro’s, followed closely by Slovakia at around 59.3% of GDP.

Europe: Greece Remains Unmatched

At the EU level, average public debt stands at close to 81% of GDP, while in the eurozone, it is slightly higher at about 88%.

Greece continues to lead in European public debt, surpassing 160% of GDP. Despite improvements in reducing debt levels, the legacy of the debt crisis from earlier in the decade still significantly affects its finances. Italy follows closely with about 137%, and France is in third place at approximately 110%.

Other countries in the higher range include Spain and Belgium (around 106%) and Portugal (about 103%). Germany, despite its strong economy, reports a public debt level of about 64% of GDP, influenced by increased borrowing during the pandemic and energy crises.

Conversely, Estonia has the lowest public debt, estimated at only around 20% of GDP, with Bulgaria and Luxembourg also maintaining levels below 25%. These nations benefit from conservative fiscal policies and a limited public sector, leading to high creditworthiness and low borrowing costs.

Government Challenges: A Focus on 2027

While Montenegro’s current public debt is significantly lower than that of Greece or Italy, the high proportion of external debt and major liabilities related to international bonds are critical for maintaining fiscal stability in the coming year.

Particularly significant is the year 2027, when a substantial portion of existing bonds must be repaid. These obligations total around one billion euros, which the state must either pay off or refinance from the budget. If market conditions are unfavorable at that time, refinancing costs may further strain public finances, according to The Banker.