On 21 July 2025, Montenegro’s Ministry of Finance made the ninth loan payment to China’s Exim Bank for the Bar–Boljare highway, saving an additional €620,000 thanks to a hedging arrangement that protects against currency fluctuations.
Without the hedge, the state would have paid €33.8m, but due to favourable exchange terms, the actual payment was €33.18m. Since the hedge was implemented in January 2025, total savings have reached €12.6m.
The original debt of $754m was converted to €693.7m under a hedging contract signed in early 2024, at a favourable average exchange rate (1.087) and a significantly reduced interest rate of 0.98%, compared to the original 2%.
As of January 2026, a new fixed rate of 1.46% will apply—still more favourable than the original terms. Finance Minister Novica Vukovic emphasised the importance of long-term fiscal stability and protecting the national budget from currency risks.
The Ministry also reminded the public that the initial hedge was signed in 2021 but paused by the previous government in 2023, resulting in a one-time gain of $64m due to a favourable USD/EUR exchange rate at the time. The original hedge was initiated under former finance minister and current Prime Minister Milojko Spajic.
