Over 21,000 Companies in Montenegro Face Financial Blockades

As of the end of February 2024, a significant financial crisis has emerged in Montenegro, with 21,130 businesses facing account blockades due to outstanding debts totaling 1.63 billion euros. This figure represents a 1.12 percent decrease from January 2024, according to data released by the Central Bank of Montenegro (CBCG).

The overall debt that has led to these blockades has increased by 1.39 percent compared to the previous month. The concentration of this debt is notably high; the ten largest debtors, making up just 0.05 percent of all recorded entities, account for 37.78 percent of the total blocked amount, amounting to 615.76 million euros.

Debt Distribution Among Companies

The issue of financial blockage is not uniformly distributed across the business landscape. A staggering 56.25 percent of the total blocked funds, which equates to 916.92 million euros, is concentrated in the hands of the fifty largest debtors. These companies represent only 0.24 percent of the total businesses recorded in Montenegro.

Furthermore, the data reveals that 1,290 debtors have been in continuous blockade for up to one year, with their combined debts totaling 36.26 million euros. This accounts for 2.22 percent of the entire blocked amount. In a more alarming trend, 19,840 companies have been in blockade for over a year, facing a staggering 1.59 billion euros in frozen assets.

The implications of these financial challenges extend beyond mere numbers; the economic stability of Montenegro is at stake. As businesses grapple with these blockades, the potential for job losses and reduced economic activity looms large.

The CBCG’s report underscores the urgent need for measures to address the increasing financial distress among companies in Montenegro. Without significant intervention, the ripple effects of this situation could be felt across various sectors of the economy.