Montenegro has withdrawn an earlier approval allowing Luštica Development to use rights over its marina and waterfront promenade near Tivat as collateral for a €15 million loan from Serbia’s Alta Bank. The five-year facility was designed to provide working capital and included a 12-month grace period. Alta Bank was to charge fixed annual interest of 8.5 per cent until the collateral was registered, with the rate then falling to 7.5 per cent.
Government reverses June approval
The Montenegrin government approved the collateral arrangement on June 29, but revoked that decision on July 28 and instructed the responsible ministry to remove the lien from public records. The government cited unspecified changes in the legal and factual circumstances surrounding the arrangement. The decision does not establish whether the underlying loan can proceed using alternative security. The case adds to evidence of growing cross-border lending by Serbian banks to major property and tourism developments in Montenegro.
Alta Bank and AikBank financing
Luštica Development’s 2025 financial statements showed €10.65 million in outstanding long-term borrowing from Alta Bank, distributed across three credit facilities. The resort developer also has financing from another Serbian bank. In January 2026, it drew €35 million from AikBank in two tranches. That financing was secured through property mortgages, rights over construction land, receivables, shares and a corporate guarantee from majority owner Orascom Development Holding.
At the end of 2025, Luštica Development reported €47.7 million of long-term debt and net profit of approximately €574,000.
Luštica Bay ownership structure
The Montenegrin state holds a minority stake in Luštica Development, while Orascom Development Holding controls the company and the development of the Luštica Bay resort near Tivat.
