Montenegro First Resilient Fiscal and Sustainable Development DPF

The development objective of First Resilient Fiscal and Sustainable Development DPF Project for Montenegro is to support the government of Montenegro to: (i) strengthen fiscal sustainability and (ii) enable sustainable development. The DPF program supports reforms to strengthen the resilience of fiscal and development policy. These reforms are consistent with the government’s Economic Reform Program for 2024-2026. The operation is the first in a series of two programmatic loans organized under two pillars: (i) strengthening fiscal sustainability; and (ii) enabling sustainable development. These pillars closely complement each other in reinforcing the impact of the reform program. The program is informed by the findings of the World Bank 2022 Montenegro Country Economic Memorandum (CEM) and builds on the programmatic Policy-Based Guarantee operations, approved in 2017 and 2020. The programmatic series of two DPFs is also an integral part of the authorities’ medium-term debt strategy. The objectives of the operation are fully aligned with the Country Partnership Framework (CPF) FY2025-2029. The reforms supported by this operation benefit from the coordinated support and targeted technical assistance from the European Commission (EC), French Development Agency (AFD), the International Monetary Fund (IMF), and the World Bank.