03 | THE DELIVERY – POLICY-BASED LENDING
POLICY-BASED LENDING
Reforming policies to mobilize Montenegro
National reforms — encouraged and driven by policy-based loans — are often the key to long-term sustainable development. In 2024, the OPEC Fund provided US$437 million in policy-based lending to partner countries worldwide.
Montenegro’s economy is small, open and service-based — and so highly exposed to external shocks. That is one fundamental reason why the government of this rugged Balkan country, nestled in the heart of Southeast Europe, is forging ahead with structural reforms. Driven by the twin goals of sustainably boosting its economic competitiveness and raising living standards, the government is seeking to improve productivity, human capital and equal opportu- nities. Key to these efforts will be to ensure stronger public institu- tions as well as more robust and consistent policy implementation. A further priority for this European Union candidate country is deepening integration with EU markets. Key to this process is the green transition, with a sectoral focus on everything from sustain- able forestry to renewable energy to improved waste and water management. That is the backdrop to the OPEC Fund’s first ever loan agreement with Montenegro — specifically ¤50 million to strengthen fiscal sustainability and the green transition under the Resilient Fiscal and Sustainable Development Program. Co-financed by the World Bank with a further ¤80 million and the French Development Agency (AfD) with an additional ¤50 million, the project is fully aligned with Montenegro’s EU accession goals and its commitments under the Paris climate agreement.
ABDULHAMID ALKHALIFA President, OPEC Fund
“We are proud to partner with Monte- negro for the first time, supporting reforms that address fiscal challenges while enabling the transition to a greener and more sustainable economy. This milestone marks the beginning of a strong partnership, and we are committed to working closely with Montenegro to bolster its development and the delivery of its climate objectives.”
¤50 MN OPEC Fund loan
622,000 Population of Montenegro
64.5 % Public debt estimate for 2026
Source: World Bank
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