The Central Bank of Montenegro published an update from the 75th meeting of the Financial Stability Council, which reviewed the Q3 2025 financial stability assessment and concluded that financial stability has been preserved. The Council noted that cyclical risks are building, particularly from strong credit growth and real estate prices at historical highs, and referenced the Central Bank Council’s decision of 18 December 2025 to extend measures limiting the approval of cash loans to citizens for an additional one-year period. The review pointed to supportive macroeconomic conditions, with preliminary data showing annual GDP growth of 3.2% in the first half of 2025, retail trade growth of 3.9% and construction growth of 4% over the first nine months, alongside a 3.7% decline in industrial production. Public finances were assessed as relatively stable, with a budget deficit of 3% of GDP in 2024 and 1.1% of projected GDP in the first nine months of 2025, while public debt edged down from 61.3% of GDP at end-2024 to 60.8% by end-Q2 2025. In banking, deposits reached EUR 6.1 billion at end-September 2025 (78.8% of liabilities) and total loans stood at EUR 5.36 billion, up 16.3% year on year. The Central Bank indicated it will continue monitoring risks linked to rising real estate prices and household borrowing and may apply additional macroprudential instruments if needed.
Central Bank of Montenegro 2025-12-22
Central Bank of Montenegro extends citizen cash-loan limits for another year as Financial Stability Council reviews Q3 stability
The Central Bank of Montenegro's Financial Stability Council concluded that financial stability is preserved despite rising cyclical risks from strong credit growth and high real estate prices. The Central Bank extended measures limiting cash loans to citizens for another year. Macroeconomic conditions remain supportive, with GDP growth at 3.2% in H1 2025, while banking deposits and loans have increased significantly.