July 2012
Supportive Institutional Framework and Increased Competitiveness Crucial for the Growth of the Montenegrin Economy Montenegro's Prime Minister, Igor Lukšić, stated at the opening of the conference, The Montenegrin Economy – The Way to Economic Growth, which took place in Budva on 29-30 May 2012, that the continuity of economic growth is the key to prosperity. He also said that it is the most effective way to combat unemployment, poverty, budget deficit and public debt. Prime Minister Lukšić said that factors such as abundant natural resources, a well-trained workforce and the availability of new technology can all positively affect economic growth, but are not sufficient alone. A supportive institutional framework, which suggests that structural reforms and cutting red tape will be necessary, is of paramount importance if a country wishes to advance economically and to encourage entrepreneurs, innovation and investment. Source: Government of Montenegro
Bulgaria and Montenegro to Cooperate on SME Promotion
The World Bank Guarantees €100 Million Loan for Montenegro
Bulgaria’s government approved a memorandum of understanding between Bulgaria’s Executive Agency for the Promotion of Small and Medium-Sized Enterprises and Montenegro’s Directorate for the Development of Small and Medium-Sized Enterprises. Both sides are to cooperate on the organization of events promoting SMEs such as planning exchange visits for entrepreneurs, arranging for people to participate in business forums and seminars, and promoting commercial fairs, exhibitions and other activities that will enhance economic partnership between the two countries. Source: www.mipa.co.me
The Ministry of Finance has announced that the World Bank has guaranteed a loan of €100 million for Montenegro. The loan will be repaid over a period of seven years in almost equal installments. Representatives from the World Bank said that they consider that public finances in Montenegro are stable. The Montenegrin Central Bank and IMF believe that the economic situation in Montenegro has improved, but that there are still numerous challenges and that reforms still need to be implemented. Source: www.vibilia.rs
Montenegro and Albania Signed Agreement on 11 Cross-Border Projects The Ministry of Foreign Affairs and the European Integration and EU Delegation to Montenegro signed an agreement on eleven projects which will be implemented under the umbrella of the cross-border cooperation program between Montenegro and Albania over the course of the next two years. Financial resources from the cross-border cooperation program will be provided for projects in the area of economic development. There will be a special emphasis on tourism but projects in the areas of environmental protection and social cohesion will also be given support. Projects in Montenegro are worth a total of €1.4 million. Source: Montenegro Ministry of Foreign Affairs and European Integration
EBRD Cuts Forecast for Montenegro’s Growth Rate The European Bank for Reconstruction and Development (EBRD) has cut the anticipated 2012 economic growth rate for Montenegro by almost a half, thus reducing it from 1.6 to 0.8% of GDP. EBRD, in its Regional Economic Prospects, assessed that Montenegro’s economy is still struggling to recover from the effects of the crisis. The country’s current account deficit remains high, industrial production is volatile and credit growth is still negative on a year-onyear basis. The continued uncertainty over the future of the aluminum complex KAP, which has been making significant losses, is another source of concern. However, the country has significant long-term potential in the energy sector. Source: Government of Montenegro
SSICG Rates the Business Environment in Montenegro at 5.8 The Montenegrin Foreign Investment Council (SSICG) rated the business environment in Montenegro at a level of 5.8. This indicates that the current situation is comparatively good, but that there is still room for improvement in certain important fields. At a press conference presenting the annual publication of the White Book, the Chairman of the Council, Szabolcs Horvath, stated that ‘the current situation is comparatively good, but that there is still room for further improvement in some of the key fields on which the rating is based’. Source: MNNews
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