Montenegro Airlines' request for debt restructuring denied – Montenegrin airline flying towards bankruptcy?

The Tax Administration of Montenegro has denied Montenegro Airlines' request for the restructuring of the debt amounting to over EUR 15 million. The decision has been sent to the company, and their request for debt repayment in 60 monthly installments has been denied since they have been beneficiaries of state aid.

The initiation of bankruptcy proceedings is one of the solutions for the companies which have not restructured their tax debts and Montenegro Airlines will likely not be able to solve the enormous debt issue and will end up in bankruptcy.

The Tax Administration has said several times that the companies which have not applied for the restructuring, or have been denied for any reason, will have to face serious consequences, such as increased inspection supervision, but also the initiation of bankruptcy proceedings at the Commercial Court.

Nevertheless, as the operations of Montenegro Airlines are of public interest, especially now that the tourist season is about to begin, the Government of Montenegro will try to find a way for the company to repay the debt, although chances are slim that this will succeed.

The problems at the national airline continue to pile up. Besides heading the list of the biggest personal income tax and contribution debtors with over EUR 15 million, they incurred record losses of over EUR 11 million last year.

Montenegro Airlines finished last year with a record loss in the past ten years, amounting to EUR 11.5 million, which is around one million more than the loss of 2015, which amounted to EUR 10.4 million.

Montenegro Airlines Podgorica

Poreska uprava Crne Gore

Vlada Crne Gore

Montenegro Airlines

Tax Administration of Montenegro

tax debt restructuring

Montenegro Airlines bankruptcy

Government of Montenegro