Nevertheless, it is unclear whether Montenegrin land actually serves as collateral in the loan, since the relevant part of the agreement is vaguely formulated. And comprehensive studies such as one by the Rhodium Group suggest that asset seizures by China are an extremely rare occurrence, while debt forgiveness and refinancing are common. The key issue is whether Montenegro’s new government is well-equipped to renegotiate Chinese debt deferment or forgiveness given the haste with which it has handled the process so far. The Montenegrin minister of finance has already clarified his government’s position by saying that Montenegro can repay the loan. Following a meeting with the Chinese ambassador in Podgorica, he praised the country’s work with the Chinese bank, called for greater cooperation with China on tourism, and argued that Montenegro should certify the Chinese vaccine.
