August 2011
Investment-Development Fund Approved 37 New Projects The Board of Directors of the Investment-Development Fund of Montenegro reached a decision regarding financing 37 projects of small and medium-sized companies, to the amount of €2,801,500. The share of responsibility taken by the Investment-Development Fund for financing these projects is €2,566,000. Commercial banks are responsible for the remaining €235,500. In projects from the production sector, food production and service activities dominate – they account for more than 70 % of the total number of approved projects. The InvestmentDevelopment Fund has identified 14 projects that will be realized in the north of Montenegro, and has also agreed to contribute to reducing presently existing regional differences.
Agreement on Air Traffic with Switzerland The Ministry of Transport and Maritime Affairs of Montenegro is negotiating with several low-cost airline companies that are interested in Montenegro. By September, they will make an announcement to disclose their decision regarding whether there will be any new flights and when these new operations would start. The Minister of Transport signed an agreement on air traffic between Montenegro and Switzerland with the Swiss Ambassador. The Swiss Ambassador stated that tourists from his country are not interested in whether or not Montenegro has low-cost flights, but are rather interested in the quality of services provided by Montenegro.
Montenegro Changes the Motorway Project With the support of the European Investment Bank, the Montenegrin government will apply for technical and consulting help from the Western Balkans Investment Framework in order to realize the construction project concerning the Bar-Boljare motorway. Montenegro will make a request for funds for technical aid, and in December 2011 the EU and the international financial institutions will decide on the selection of a consultant to start auditing the project in 2012. The consultant should finish the job within 3 to 6 months, after which time a recommendation will be made to the Montenegrin government regarding how to start a new tender process.
Construction of a Second Montenegrin Ship Started in Shanghai The construction of a second Montenegrin ship has started in Shanghai. The delivery of the first ship is planned in December 2011, and the second ship is expected to be delivered in March 2012. The Montenegrin Ministry of Transport and Maritime Affairs stated that the amount of the loan that has been granted is $47.396 million. There is a repayment deadline of 15 years, a grace period of 5 years and fixed interest rate of 3 %. The two ships are identical transoceanic ships that are intended for the transport of bulk cargo. The ships were purchased at almost half the usual price, when compared with the previous year’s prices - $27.88 million per ship.
The Chamber Assembly on the functioning of economy in the first quarter, with special emphasis on liquidity The main topic discussed at the session of the Chamber of Economy of Montenegro’s Assembly was functioning of the economy for the period January - June 2011 with the particular emphasis on liquidity and disturbed debtor-creditor relations in commercial business recalling that this is not just a problem of our economy, but also of the countries that are members of the European Union, for which reason the European Parliament in February this year adopted the Directive on prevention of late payments in commercial transactions. At the meetings, the businessmen have pointed out to the need for urgent addressing of this problem. They proposed introduction of multilateral compensation, ensuring more favorable loans, deferred payment of VAT, reducing taxes and contributions on income, introduction of new financial methods and instruments of collection of receivables, such as extrajudicial collection through specialized agencies, factoring and forfeiting.
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