This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of September 6-October 5, 2015.
A coalition that has held together for almost 20 years is on the brink of collapse in Montenegro, where early elections are expected to be called for spring 2016.
Meanwhile, a protest rally, organized by Montenegro’s opposition Democratic Front (DF), started in the capital Podgorica on September 27, gathering between 1,500 and 5,000 people in front of the parliament building.
On the corporate side, Montenegrin unit of Hypo Alpe Adria Banka has filed a claim at the constitutional court, challenging the constitutionality of the law on the conversion of Swiss franc-denominated loans into euro. At the same time, Nebojsa Medojevic, leader of Montenegro's political party Movement for Changes (PzP), has filed a claim with the supreme court against Montenegrin unit of Hypo Alpe-Adria Banka and its executive director, Christof Schoen.
Economic crime inspectors will start investigating the operations of Montenegro’s flag carrier Montenegro Airlines.

Key points:

• The budget deficit increased more than three times y/y to €232.7mn in the first eight months of 2015 from €65.4mn a year earlier
• The number of foreign tourists visiting Montenegro increased by 11.8% y/y to 509,959 in August, slowing significantly from a 33.4% y/y rise in July
• Industrial output ended its upward trend in August, declining by 0.1% y/y
• Bank assets rose 10.8% y/y to €3.46bn at end-August