The Government of Montenegro Plans to Borrow Hundreds of Millions of Euros in 2026
The government intends to secure significant loan funds to implement more than 30 capital projects — from modernizing healthcare and transport to strengthening defense capabilities and digital infrastructure. The relevant plan has already been sent...
The government intends to attract significant borrowed funds to implement more than 30 capital projects — from modernizing healthcare and transport to strengthening defense capabilities and digital infrastructure. The corresponding plan has already been sent to parliament and covers both specific projects with designated lenders and initiatives whose financing will be agreed over the next year.
According to the authorities, the total budget financing gap in 2026 will amount to around 710 million euros. To cover it, as well as to refinance existing debt and build a financial reserve, the state plans borrowing on record amounts.
The government separates projects with lenders and without
The document provides for dividing all projects into two categories:
projects for which lenders have already been identified;
projects whose financing will be agreed in 2026 on a competitive basis.
The first list includes initiatives supported by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the World Bank and the Council of Europe Development Bank (CEB).
Among them:
construction of a new prison in Mojkovac — 30 million euros;
expansion of the waste management center in Bijelo Polje — 20 million euros;
modernization of the Bar – Golubovci railway line — 113 million euros;
a section of the Podgorica bypass as part of the Bar – Boljare highway — 100 million euros.
In addition, the plan includes projects in the areas of ecology, sustainable development, healthcare, education, broadband internet and digitization of the tax system.
The most expensive projects: healthcare and digital infrastructure
The largest investment volumes are planned for projects for which lenders have not yet been identified. The main one is the construction of a new Clinical Center in Podgorica, estimated at 313 million euros. The project is intended to significantly improve the quality of medical care and create a modern base for treating patients from across the country.
This same block also provides for financing a national data center and a disaster recovery system, which should increase the resilience of state information systems and ensure the protection of critically important digital infrastructure.
Defense and security
Special attention in the borrowing plan is given to strengthening the defense sector. The state plans to allocate:
75 million euros for the purchase of military equipment;
another 75 million euros — for modernizing air defense systems;
100 million euros — for the purchase of helicopters and a specialized aircraft for firefighting.
These investments are explained by the need to improve readiness for emergency situations and modernize the army in line with international obligations.
Infrastructure and regional development
Borrowed funds will also be directed to large-scale infrastructure projects across the country. Among the priorities:
development of the Velje Brdo area in Podgorica;
modernization of water supply systems in light of climate change;
reconstruction and construction of roads;
improvement of utility infrastructure in several municipalities.
Individual projects will be implemented in the northern and coastal regions, which, according to the government’s plan, should contribute to more balanced regional development.
Covering the deficit and refinancing debt
In addition to investment projects, the state plans borrowing to stabilize the budget. It is envisaged:
up to 500 million euros — to cover the 2026 budget deficit;
up to 1 billion euros — to refinance existing debt obligations and strengthen financial reserves.
It is also planned to provide state guarantees of up to 171.95 million euros for the implementation of projects in the energy sector, railway transport and electricity transmission systems.
Financial discipline and oversight
The government emphasizes that the borrowing program complies with constitutional and legislative norms. The document sets out in detail the lending limits, mechanisms for managing public debt and oversight of the use of funds.
According to government representatives, raising borrowed funds is seen not as a temporary measure, but as a strategic tool for stimulating economic growth, improving the quality of public services and modernizing key sectors.
It is expected that parliament will consider the proposal in the coming months. If approved, implementation of the listed projects will begin as early as 2026, which could significantly affect the face of Montenegro over the next decade — from healthcare and transport to defense and digital security.
Economists also note that such large-scale borrowing will require strict control over spending efficiency and transparency in project implementation. Otherwise, the growth in debt burden could put pressure on the budget in the years ahead. The authorities, in turn, emphasize that the investments are strategic in nature and aimed at the long-term growth and resilience of the country’s economy and improving the quality of life.
