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Business news Montenegro Moved Up 4 places in the Global Enabling Trade Report 2012 According to the Global Enabling Trade Report published by the World Economic Forum, Montenegro is ranked 39. It improved its position by 4 places compared with 2010. Montenegro holds a better position than most of the countries in the region: Croatia (46), Italy (50), Macedonia (61), Serbia (71), and Bosnia and Herzegovina (80). The core content of the report is the Enabling Trade Index which measures the extent to which individual economies have developed institutions, policies, and services, and the way in which these economies facilitate the free flow of goods over borders to reach their intended destinations. The report has been produced with the support of following institutions: the Global Express Association (GEA), the International Air Transport Association (IATA), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD), the World Bank (WB), the World Customs Organization (WCO), and the World Trade Organization (WTO). Source: www.mipa.co.me
Montenegro Committed to a Green Economy and Sustainable Development Prime Minister Igor Lukšić opened a two day national conference entitled ‘How to Achieve Sustainable Development and a ‘Green’ Economy in Montenegro’. The conference took place in Kolašin on 24-25 April. In his opening address, Mr. Lukšić testified the government’s readiness to deal with the challenges of climate change and sustainable development. Prime Minister Lukšić said that Montenegro’s transformation into a ‘green’ country should be based on tourism, agriculture and energy; the three sectors with the greatest ‘green’ potential and with the best potential for growth in employment in Montenegro. He added that the fact that the business sector is not currently involved in sustainable development may be a major reason that is is not being adequately implemented. Source: Government of Montenegro
Moody’s Agency Confirms Montenegro Ba3 Credit Rating Moody’s credit rating agency has confirmed that Montenegro has a Ba3 credit rating with a stable outlook; together with last year's outlook, which indicated an improvement from negative to stable, this is confirmation that the government is striving to maintain fiscal stability within the economy. The fact that the previous credit rating has been maintained is a significant achievement, especially at the present time when credit rating agencies are lowering the ratings of many European countries almost on a monthly basis. Moody’s monitors and evaluates a large number of indicators in its reports. Montenegro has achieved better results than other countries with the same rating: GDP per capita (this indicator is 2.5 times higher in Montenegro), the percentage share of direct foreign investments recorded in GDP (the indicator is much better), interest paid on revenue, etc. The report produced by this reputable international credit agency is an additional incentive for Montenegro to further implement policies aimed at stabilizing public finances and creating conditions for positive economic trends. Source: The Government of Montenegro
IFC Lends €10 Million for Infrastructure Development in Montenegro IFC, a member of the World Bank Group, has lent €10.7 million to the capital city, Podgorica, to refinance a bridge construction. The city of Podgorica took the original loan in the midst of the 2009 crisis. This new loan is part of a multi-year partnership with IFC and the city of Podgorica and includes: co-financing road investments, helping refinance debt, and providing advisory services to help the city improve its road management policy. In 2010, IFC gave a €10 million loan to Podgorica to help the city to finance its eastern bypass highway. IFC plans to extend another €14.3 million loan to the municipal government to finance a southwestern bypass highway that has been planned; this will reduce travel times and costs for approximately 50,000 people each day. Source: Balkan Business News
Montenegro’s PM and IRENA’s Director General Talk about Energy Development Montenegro’s Prime Minister, Igor Lukšić, and the Director General of the International Renewable Energy Agency (IRENA), Adnan Z. Amin, discussed Montenegro’s large energy potential and abundance of water, wind, and solar energy which could allow it to become a regional hub for the exchange of experience in the area of renewable energy. Mr Amin underlined that he was glad that the Government of Montenegro recognizes the country’s full potential through its strategic policies and documents. He noted that this could be a viable formula for the entire region. The International Renewable Energy Agency is to provide technical and expert support to Montenegro with the aim of achieving full and sustainable use of the country’s renewable energy resources. Source: Government of Montenegro
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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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