Despite the better than expected budget outturn in January-September, Montenegro's fiscal outlook remains uncertain owing to the continuing decline in revenue. The most recent projection of the Ministry of Finance expects a budget deficit of EUR120m (or 4% of the projected GDP) in 2010, as a result of accelerating spending in the final quarter of the year. To secure financing, the government has been discussing with the World Bank a possible budget support loan worth US$85m, to be made available in early 2011.

The financing of the deficit has been made more difficult by the sluggish pace of privatisation. Receipts from privatisation and the sale of publicly owned real estate amounted to only EUR2.8m in the first nine months of 2010 compared with EUR44.3m planned in the budget. The poor receipts from privatisation were a reflection of the lack of interest on the part of foreign investors. A case in point is Montenegro Airlines, in which a 30% stake was put up for sale again in September 2010, following the failure of a tender in 2009. The response to the latest tender has so far been muted.