Procurement of 86 military vehicles from Italy delayed, Government approves changes to loan arrangement

The Government has adopted a proposed annex to the 20 million euro loan agreement that the Ministry of Finance concluded with CKB Bank last year for the procurement of 86 military logistics vehicles for the needs of the Montenegrin Army, which extends the deadlines for using the money and repaying the principal by three months due to delays in the delivery of the vehicles from Italy.

The Ministry of Finance's information states that the first contingent of 31 vehicles will only be delivered in the second half of June this year, while the payment for the second contingent of 55 vehicles has been postponed to July and August, which is why it was necessary to extend the loan availability period and the grace period from 12 to 15 months.

The Ministry of Finance and CKB concluded a loan arrangement on June 4 last year. The loan was agreed for the amount of 20 million euros, with a fixed interest rate of 3,7 percent, a repayment period of six years and a one-year grace period.

The Ministry of Finance states that the first tranche of the loan of 6,13 million euros was used in June last year, while the second was supposed to be withdrawn within nine months of the conclusion of the commercial contract with the Italian manufacturer "Iveco". However, due to delays in the delivery of the vehicles, the Ministry of Defense, headed by the Minister Dragan Krapović, at the beginning of May, requested that measures be taken to ensure that the loan funds remain available even after the expiration of the originally agreed deadline.

"The Ministry of Finance has been informed by the Ministry of Defense that the delivery of the vehicles will not be fully implemented in accordance with the agreed deadlines. The delivery of the first contingent, consisting of 31 vehicles, will be implemented in the second half of June 2026. Payment for the first contingent of vehicles was made in June 2025 from the first tranche of the approved loan in the amount of 6,13 million euros. After the delivery of the first contingent of vehicles, the conditions for payment of the second contingent, consisting of 55 vehicles, are met. Payment for the second contingent of vehicles is planned for the period July/August 2026, while the delivery of the vehicles itself will be carried out by the end of 2026," the Ministry of Finance said in a statement.

It is further stated that CKB Bank submitted to the Ministry of Finance a draft annex to the Loan Agreement containing the following conditions: repayment period of 72 months from the date of loan disbursement, including a 15-month grace period, maturity of 72 months from the date of loan disbursement, including a 15-month grace period.