More than 168.000 citizens indebted to banks, owing 2,43 billion euros

Total household indebtedness in Montenegro based on bank loans is on the rise, both in terms of the number of borrowers and the overall amount of debt. The Central Bank notes that these figures must be viewed within a broader economic context, with an emphasis on responsible lending.

- Total indebtedness of individuals based on bank loans, as of December 31, 2025, amounts to 2,43 billion euros - Coordinator of the Supervision Sector at the Central Bank of Montenegro Nikola Bašanović told Portal ETV.

Responding to a question from Portal ETV, he stated that as of December 31, 2025, a total of 168.034 individuals had active bank loans.

- The average indebtedness of individuals based on bank loans, per adult citizen of Montenegro, as of December 31, 2025, amounts to 4.900 euros - Bašanović emphasized.

Asked whether these figures are a cause for concern, Bašanović said that when observing trends in total household indebtedness in Montenegro, an increase can be seen both in the number of indebted individuals and in the total outstanding debt balance.

- Compared to 2021, the number of indebted individuals increased by around 13 percent by the end of 2025. On the other hand, the nominal growth of total household indebtedness compared to 2021 amounted to around 67 percent by the end of 2025. However, the nominal amount of debt cannot be viewed in isolation, but rather in the context of the broader economic environment, primarily the growth in average wages. The average net wage increased by around 89 percent by the end of 2025 compared to 2021 - he said.

As he explained, rising incomes have strengthened citizens’ creditworthiness, combined with more favorable lending conditions and an increased willingness and interest in using credit products.

- When approving loans, banks are required to assess the client’s creditworthiness. In practice, banks apply a rule whereby the client’s total monthly debt does not exceed a certain percentage of their monthly income, in order to ensure that the client can regularly meet their obligations. These percentages vary from bank to bank and are the result of internal policies, with the obligation to comply with regulatory guidelines that promote responsible lending - he added.

Bašanović stressed that the Central Bank of Montenegro, in line with its mandate to preserve financial system stability, recommends responsible and moderate borrowing by citizens, in accordance with their real financial capacities.

- Within its supervisory competencies, the Central Bank of Montenegro continuously monitors clients’ indebtedness through numerous bank reports, which include key data on loan structure, repayment periods, interest rates, and the level of regularity in meeting obligations - he pointed out.

In that context, he added, the implementation of the new Consumer Credit Law is of particular importance, as it regulates the rights and obligations of consumers and lenders, as well as mechanisms for protecting users of financial services.

- Among other things, this law ensures transparent information for clients about all loan costs, while, with the aim of preventing excessive indebtedness, it prescribes a more detailed and stricter assessment of consumers’ creditworthiness compared to previous regulations, thereby ensuring responsible lending and strengthening financial stability - Bašanović said in his statement to Portal ETV.