The Central Bank of Montenegro has adopted the
Decision on Determining the Default Interest Rate for the Period from 1 July to 31 December 2025
(“Official Gazette of Montenegro”, No. 068/25 of 01.07.2025).
This decision stipulates that the default interest rate for the second half of 2025 shall be 10.15%. The decision was adopted in accordance with the legal powers of the Central Bank and represents the regular semi-annual adjustment of the interest rate in line with economic indicators and market developments.
What is Default Interest and Why is it Important?
Default interest is the amount a debtor pays to a creditor as compensation for delay in fulfilling a monetary obligation. Its level has a significant impact on:
- Financial discipline in the economy
- Liquidity of companies and the public sector
- Creditor protection against losses due to late payment
In practice, default interest is calculated in cases of:
- Late payment of invoices and contractual obligations
- Untimely settlement of tax and other public liabilities
- Court disputes involving awarded damages or debts
Practical Implications of the New Rate
This new rate of 10.15% will apply to all cases of late payment during the period from 1 July to 31 December 2025.
Changes in the default interest rate affect:
- Businesses – adjusting calculations when collecting receivables or paying liabilities
- Individuals – increase or decrease in interest amounts in case of delays
- Institutions – calculation of statutory interest on taxes, contributions, and other public revenues
Decisions on the level of default interest reflect current economic conditions and serve as a tool for maintaining financial discipline. Meeting payment deadlines is the best way to avoid additional costs on this basis.
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