Press release from the 74th Cabinet session

The Montenegrin Cabinet held its 74th session today, chaired by Deputy Prime Minister Aleksa Bečić. The Cabinet adopted the Draft Law on amendments to the Law on Compulsory Traffic Insurance. The primary reason for drafting this draft law is to align with Directive (EU) 2021/2118 of the European Parliament and the Council of 24 November 2021, amending Directive 2009/103/EC regarding civil liability insurance in the use of motor vehicles and the enforcement of insurance obligations related to such liability. Additionally, the proposed text introduces changes, at the request of the National Bureau of Insurers of Montenegro, aimed at improving the motor vehicle liability insurance by enabling the implementation of modern, automated solutions that will reduce costs, enhance efficiency, and ensure compliance with European Union standards.

The Cabinet adopted amendments to the Draft Law on amendments to the Law on Civil Servants and State Employees. The essence of these amendments is to clarify that heads of administrative bodies, individuals in high managerial positions, expert managerial positions, and expert positions may be persons with at least a Level 6 qualification, as well as those with a higher level of qualification, rather than exclusively individuals holding a Level 6 qualification.

The Cabinet adopted the Report on the implementation of the Capital Budget for 2024. In 2024, a total of €251.65 million was spent on the implementation of Montenegro’s Capital Budget, representing 106% of the total amount planned by the budget revision, or €62.63 million more than in the same period of the previous year. Of this amount, €113.72 million was spent from general budget revenues, €29.03 million from loans, €12.60 million from EU grants (IPA projects), and €0.28 million from European Bank donations.

For projects implemented by the Capital Projects Administration, a total of €131.31 million was paid, or 108% of the total planned sum, which is €24.24 million more than the previous year. Of this amount, €113.71 million was paid from budgetary funds, €5.00 million from loans, and €12.60 million from EU grants.

For projects implemented by the Transport Administration, a total of €120.34 million was paid, representing 104% of the total planned sum, which is €38.39 million more than the previous year. Of this amount, €96.02 million was paid from budgetary funds, while €24.03 million was financed through loans. For the settlement of property-related legal matters, €28.52 million was paid from budgetary funds in 2024, of which €27.36 million was allocated for the second section of the highway, including €22.49 million from designated revenues under the 'economic citizenship' programme.

To continue the construction of the Bar-Boljare highway, Monteput completed the prequalification process in 2024 for selecting contractors and supervisory experts for the construction of the second section from Mateševo to Andrijevica, in accordance with EBRD financing procedures, FIDIC conditions, and Montenegro’s legal framework. The evaluation of applications and approval of the shortlist by the EBRD is underway, after which the second phase of selecting the most favourable bidder will be conducted.

The Cabinet adopted the Report on Public Debt as of 31 December 2024. The total public debt as of 31 December 2024, amounted to €4,573.83 million, equivalent to 61.32% of GDP. Taking into account the Ministry of Finance’s deposits (including 38,477 ounces of gold), which amounted to €385.36 million at the end of 2024, Montenegro's net public debt as of 31 December 2024 was €4,188.48 million or 56.15% of GDP.

Compared to the end of 2023, public debt at the end of 2024 increased by €447.03 million in absolute value and by 1.05 percentage points relative to GDP. In 2024, the State issued a bond on the international market amounting to $750 million (equivalent to €687.76 million after concluding a hedging arrangement). Additionally, a development policy loan of €180 million was secured. During this period, €74.37 million was drawn from previously signed loan agreements, while €495.55 million was used for regular debt repayment.

In terms of borrowing instruments, the largest portion of debt at the end of 2024 was attributed to government bonds issued on the international market, which accounted for 53.30% of public debt. Montenegro has four government bond issues listed on the international capital market—one denominated in U.S. dollars amounting to $750 million, and three denominated in euros totaling €1,750 million.

On the domestic market, one government bond issuance of €50 million is listed.

The total state debt (excluding deposits) as of 31 December 2024 amounted to €4,514.77 million or 60.53% of GDP. Including deposits, the total state debt at the end of 2024 was €4,129.42 million or 55.36% of GDP. The external debt amounted to €1,183.48 million or 56.08% of GDP, while domestic debt stood at €331.30 million or 4.44% of GDP. The total state debt also includes €34.21 million in debt from local governments, based on agreements concluded by the Ministry of Finance with international creditors and subsequently transferred to municipalities as concessional loans.

Compared to the end of 2023, the total state debt increased by €454.87 million, resulting from the difference between an increase in external debt by €666.19 million and a decrease in domestic debt by €211.32 million.

The Cabinet adopted the Report on the conducted activities of the 2024 Population, Household, and Housing Census and the expenditure of funds allocated from the Budget of Montenegro. Of the total planned funds, €4,788,355 was utilized in 2024. These funds were primarily allocated for key census activities, including fieldwork, in accordance with the Law on the Population, Household, and Housing Census and the Decision on the allocation of census funds for 2023, as well as for post-census activities such as data control, entry, processing, logical control, and coding of specific census data categories.

The Cabinet adopted the Information on the results of the 2025 international bond issuance.

The Cabinet adopted the Decree on conditions, methods and dynamics of implementing agricultural policy measures for 2025 – Agrobudget. This decree defines the conditions, methods and dynamics of implementing agricultural policy measures related to market and pricing policy, rural development policy, public interest projects, social transfers to individuals, food safety measures, veterinary and phytosanitary measures, and fisheries measures. The total funds allocated for the Agrobudget amount to €77,063,945, of which €56,541,305 is from the Budget of Montenegro for 2025, €11,022,640 from donations, and €9,500,000 from loan funds.