Montenegro has completed the first phase of the highway construction that is supposed to connect the port of Bar on the Montenegrin Adriatic coast with neighboring Serbia, but it is now facing a problem as it has run out of money, reports Al Jazeera.
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A Chinese loan for the construction of the first phase has increased Montenegro’s debt and forced the government to raise taxes, partially freeze public sector salaries, and eliminate benefits for mothers in order to bring finances in order. However, even with these measures, the country’s debt could reach 80 percent of gross domestic product. The International Monetary Fund warns that the country cannot afford new borrowing to complete the ambitious project.
The problem is also that the highway has been promoted as a way for the nation to reach a better future.
“This highway is a big deal for Montenegro. It reminds the people of [long-time president of former Yugoslavia Josip Broz] Tito and the time of great socialist projects in the region. It is a trap. Now, when the project has been initiated, it cannot be stopped, no matter how harmful it may be. Honestly, they do not want to stop it either,” says Mladen Grgić, author of a 2017 study on the highway.
