The World Bank Group's Board of Executive Directors has approved a EUR 80 million loan to Montenegro. The funding aims to bolster fiscal sustainability and promote sustainable development in the country. This initiative, known as the Montenegro First Resilient Fiscal and Sustainable Development Policy Financing (DPF), seeks to enhance revenue generation, improve spending oversight, reduce fiscal risks, and address environmental degradation and climate change challenges.
Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro, stated, "This operation plays an important role in supporting Montenegro’s efforts to build a more sustainable and resilient future." He emphasized that the focus on fiscal sustainability and sustainable development would aid Montenegro in implementing crucial reforms benefiting both its economy and environment.
The program aligns with Montenegro's aspirations for European Union accession, its 2024-26 Economic Reform Program, and its commitments under the 2015 Paris Agreement. It supports the country's transition to a greener economy expected to create jobs, increase competitiveness, improve living standards, and enhance resilience against climate-related risks.
In addition to the World Bank's support, the project is backed by parallel financing from the French Development Agency (AFD) and the OPEC Fund for International Development. Each organization is contributing EUR 50 million. This collaboration underscores the World Bank Group’s commitment outlined in its recently adopted Country Partnership Framework for 2025-2029 to assist Montenegro in achieving its fiscal and sustainable development objectives.