Montenegro’s government has withdrawn permission for Luštica Development to pledge rights over its marina and waterfront promenade near Tivat as security for a €15mn loan from Serbia’s Alta Bank.
The five-year loan was intended to finance working capital and included a 12-month grace period. Alta Bank would have charged fixed annual interest of 8.5 per cent until the collateral was registered, after which the rate would have fallen to 7.5 per cent.
The government approved the arrangement on June 29 but reversed its decision on July 28, instructing the relevant ministry to remove the lien from public records. Officials referred only to unspecified legal and factual changes, leaving open whether the loan itself could proceed under different security terms.
For Serbia’s banking market, the case highlights the growing cross-border role of domestic lenders in financing large property and tourism developments in Montenegro. Luštica Development’s 2025 accounts recorded €10.65mn in outstanding long-term loans from Alta Bank, divided across three facilities.
The developer has also borrowed from another Serbian lender. In January 2026, it drew €35mn from AikBank in two tranches, secured by property mortgages, rights over construction land, receivables, shares and a corporate guarantee from its majority owner, Orascom Development Holding.
Luštica Development had €47.7mn of long-term debt at the end of 2025 and reported net profit of about €574,000. The Montenegrin state owns a minority stake in the company, while Orascom controls the business and the development of the Luštica Bay resort.
