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November 2011

Business News EBRD Revised Forecast For Montenegro According to the newest forecast of European Bank for Reconstruction and Development (EBRD) growth of the Montenegrin economy this year will amount to 2.1%, which is lower than previous prediction of 2.5% made in May. However, the forecast for 2012 has not changed – Montenegro expects growth of 3%. Experts say that credit provision continues to decrease, while industrial production and exports are subject to significant fluctuations. The Bank also sees inflation in Montenegro to be at 3.4%, which is considerably higher than last year’s 0.5%. However, next year inflation will be among lowest in the region, together with Croatia and Slovenia (3.2 and 2.5% respectively).

Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...

Source: www.balkans.com

Montenegro Recorded Progress On Forbes List Montenegro improved its position on this year’s Forbes list of the best countries for doing business from 59th place to 53rd. By categories, best result Montenegro has achieved in the field of investors protection making it 27th on the list of 134 countries. Such an improvement come as a result of intensive work on improving business environment, investment promotion and national treatment of foreign investors. Source: Montenegrin Investment Promotion Agency (MIPA)

Investment-Development Fund Approved 10 New Projects The Board of Directors of the Investment-Development Fund of Montenegro reached a decision on financing 10 projects in the total amount of EUR 255.695. The participation of the Fund in the financing of the mentioned number of projects amounts to EUR 237.695, while commercial banks will set aside EUR 18.000. Out of these projects, eight will be realized within MIDAS project and the Investment-Development Fund will set aside EUR 155.695 for them. Five of these projects will be realized in the underdeveloped northern part of Montenegro. Source: www.balkans.com

Contract With The World Bank Signed

Minister of Finance of Montenegro and Director of the World Bank for South-East Europe signed a contract on a loan of USD 85 million in Washington. The main conditions for the approval of the arrangement were reaching a satisfactory level of macroeconomic stability and stabilization in the field of financial, i.e. banking system in Montenegro. Signing of the contract on the loan represents a confirmation of successful implementation of a series of reforms that will make the Montenegrin fiscal and financial system more resilient and stable for the upcoming challenges, as well as a confirmation of good cooperation between Montenegro and the World Bank. Source: www.balkans.com

Montenegro Is Still A Competitive Destination For Investments Montenegro remains a competitive investment destination as assessed at X International Investment Forum held in September 2011 in Sochi, Russia. At the conference it was stressed that the presence of Montenegro in the forum was important because of the importance of Russia as an investment partner. In direct communication with potential investors, and the round tables that have gathered various categories of exhibitors, the current activities, especially improvements in legislation, as well as activities on the realization of investment projects in transport, utilities and the biggest Montenegrin Greenfield projects were presented. The Montenegrin delegation was headed by the Minister of Tourism and Sustainable Development Mr. Predrag Sekulić. Source: www.balkans.com

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Montenegro Top Destination For Convention Tourism One of the most famous tourism and travel portals Travel Daily News announced the list of top ten destinations for convention or MICE tourism for 2011, among which Montenegro is first ranked. In the article “Top Ten Destinations for MICE Tourism” Montenegro was described as a country on Adriatic coast, closely guarded as the greatest secret of Europe, only two-hour flight away from major European cities, which owing to intensive hotel industry development is rapidly developing as a most wanted destination in this area. Besides Montenegro the following destinations were also suggested: Croatia, South Africa, India, Turkey, Greek islands, Sardinia and Seoul in South Korea.

Presentation Of The Tourist Offer To Israel At the meeting between Montenegrin Minister of Sustainable Development and Tourism and Honorary Consul of Montenegro in Israel, Israeli business people need to be presented with the potential possibilities for investments and jobs in Montenegro. Business people from Montenegro are invited to actively participate in the international conference titled Gateway to Montenegro, which will be held in Tel Aviv at the end of November 2011. The objective of that conference is to present Montenegro to the Israeli public and the biggest businesspeople as an extremely attractive tourist and investment destination.

Montenegro On The List Of PayPal Countries PayPal is the world’s largest service provider in the field of electronic payment and a guarantee of safe transactions on the Internet. With this system, when a user stores on a global network does not have to leave personal information at various online locations where purchased. PayPal was established in 1998 and is the leading company for on line payments and money transfer. The Company has more than 100 million active accounts, is available at 190 markets and supports payment in 25 currencies. Montenegro has been included in the list of countries, which will be included in the first enlargement PayPal system. Source: http://www.mid.gov.me/ministarstvo

IFC Interested To Provide Support To Montenegro At the meeting between the new regional manager of the IFC for the Western Balkans Mr. Per Kjellerhaugom and Montenegro’s Minister of Finance Mr. Milorad Katnić was concluded that current cooperation IFC and Montenegro has been very successful, and that there is still space for its further improvement. In this regard, Mr. Kjellerhaug stressed the readiness and interest in IFC to support development in energy and tourism development, the areas recognized to be the perspective of Montenegrin economy. Special emphasis was given to the importance of the continuation of structural reforms and business environment improvement. The progress of Montenegro in this field has already been recognized and will be continued through development of Doing Business Report for Montenegro. Source: http://www.mf.gov.me

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November 2011

Montenegro Agrees On Free Trade Deal with Ukraine Montenegro has agreed with Ukraine to sign a free trade agreement that will break the deadlock over the accession of Montenegro to the World Trade Organization (WTO), a process that has been halt for almost three years. The two sides agreed that all outstanding issues from the WTO-accession process should be agreed upon in a bilateral agreement on free trade that would exclude concessions from the Montenegrin side other than those agreed upon in the previous negotiations. “At our last meeting in Kyiv we agreed with the Ukrainian Government that no other concessions be asked from Montenegro in the further WTOintegration process and that the interests of Ukraine and Montenegro will be regulated through a free-trade agreement,” Minister Kavarić explained. The two sides agreed to meet again in November when they will sign the Free Trade Agreement and an agreement regarding Montenegro’s WTO accession. The free trade agreement is fully in accordance with national interests, and Montenegro, committed to being an open economy, has such agreements with CEFTA, EFTA, EU, Russia, Belarus, and other countries.

Montenegro Needs to Tighten Its Belt Montenegro must bring down the fiscal deficit, the public debt and reduce dependency on foreign finance, in particular at a time when conditions on the international market are sensitive and unpredictable, concluded Finance Minister Milorad Katnic and World Bank Regional Coordinator for Southeast Europe Jane Armitage said, presenting the World Bank‘s report on strengthening public spending management in Montenegro. The collaboration with the World Bank is of great importance in advancing Montenegro’s fiscal position and creating long-term progress, which will together improve the standard of living of the majority of citizens, Katnic said. Armitage voiced support for the Minister’s plan to continue to reduce the fiscal deficit and gradually bring down the level of public debt and said the European Commission’s recent recommendation for the start of EU accession talks was a sign of international confidence in the reforms in Montenegro.

Cargo 10, the new rail operator to contribute in boosting goods transport “Cargo 10”, a joint project of the railway companies of Serbia, Slovenia and Croatia joined Bosnia and Herzegovina (BiH), Bosnia’s Republic of Srpska, and joining announced Montenegro, Bulgaria and FYR Macedonia. This company has not yet been legally established, although it’s in function from October 4th 2010, when first train with wood briquettes moved from Paraćin to Sezana in Slovenia, dedicated to the Italian market. Corporate objectives is to reduce the transport time between Ljubljana and Istanbul, which will be increased competition in relation to other transport modes, but also in relation to alternative Corridor 4, via Hungary, Romania and Bulgaria. The full effects of “Cargo 10” are expected only after the formal establishment of the company when it will be more organized access to the market. The joint company will provide customers a maximum reduction of all the formalities in the transportation of goods - border and customs formalities, the shorter retention of freight trains on the borders, and allow also that all administrative formalities, whether in terms of export, import or transit, carried out at one place.

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