Montenegro Resort Town Seeks €21 Million From Builders

The most indebted investors in Budva are those who took advantage of an old law allowing them to obtain a building permit prior to paying utility costs. Budva Municipality is owed around €21 million by such companies, with the biggest debtor identified as Podgorica-based Fab Lajv company, which will have to pay more than €8.2 million, Vijesti reports.

Fab Lajv is constructing nearly 40,000 square metres of residential and office space in three towers near the town’s fair.

It may be difficult for the municipality to recover the money owed, but there are certain mechanisms that could force investors to pay.

For example, properties with unpaid utilities debts could be refused a usage permit. Or offices in buildings with unpaid utilities bills could be refused clearance to do business.