WASHINGTON, October 4, 2024 - The World Bank Group's Board of Executive Directors approved today a EUR 80 million loan to help Montenegro strengthen fiscal sustainability and promote sustainable development.
The Montenegro First Resilient Fiscal and Sustainable Development Policy Financing (DPF) aims to support reforms that strengthen Montenegro's fiscal sustainability through enhanced revenues, spending oversight, reduced fiscal risks, and to enable sustainable development by addressing environmental degradation and climate change challenges.
"This operation plays an important role in supporting Montenegro's efforts to build a more sustainable and resilient future," said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. "By focusing on both fiscal sustainability and sustainable development, we're helping Montenegro make progress on critical reforms that will benefit both the economy and the environment".
This new program aligns closely with Montenegro's aspirations for European Union accession, its 2024-26 Economic Reform Program, and its climate commitments under the 2015 Paris Agreement. It directly supports the country's transition to a greener economy, which is expected to create jobs, increase competitiveness, improve living standards, and enhance resilience against climate-related risks.
The World Bank's support as part of the new project is complemented by parallel financing from the French Development Agency (AFD) and the OPEC Fund for International Development, each providing EUR 50 million. This collaboration reinforces the World Bank Group's commitment, expressed in the recently adopted Country Partnership Framework for 2025-2029, to assist Montenegro in achieving its fiscal and sustainable development goals.
