ISSN 1800-8623
August 2011 A QUARTELY REPORT #37
CEED Consulting
Business Environment Macroeconomic Outlook Banking Sector Privatization and Investments Capital Market Business News Economic Freedom In the Spotlight Coming Up
MBO Summary Welcome to the thirty seventh edition of Montenegro Business Outlook. MBO is quarterly publication of pertinent economic indicators presenting a comprehensive view of Montenegro’s business environment. This publication is intended to serve international business people seeking investment opportunity in Montenegro. We welcome your comments.
Business environment: The first half of 2011 was quite difficult for Montenegrin businesses as the economic crisis was still very apparent in almost every sector of the economy. It can also be seen in macroeconomic data for the second quarter of 2011. Montenegrin Ministry of Finance projected GDP growth for 2011 on the level of 2.5 percent. A negative trend can be seen in unemployment which was at a level of 11.19 percent at the end of July which is slightly lower in comparison with the same period last year (12 percent). Also, industrial production and the level of foreign direct investments (FDI) during the period January-May 2011 were lower by 9.1 percent, or 16 percent respectively compared to the same period last year. The rise in FDI that was recorded over the previous five years has slowed down a little bit, but it has not declined. Economic freedom: “Anniversary celebrating 210 year since the birth of Frederic Bastiat” Capital Markets: After the technical merger of the Montenegro Stock Exchange and the Nex Stock Exchange at the end of December 2010, the new formed Stock Exchange (Montenegro Stock Exchange) plans to enrich the web site by improving the quality of its reporting and transparency. It is anticipated that improvements would mainly be seen in terms of the data necessary to carry out investment analyses, especially related to risk management. Banking sector: According to the latest report from the governor of the Central Bank, the banking system in Montenegro is starting to stabilize. The key risk during the forthcoming period is credit risk, although the banks are making efforts to manage and restructure their loan portfolios in order to reduce the possible risk. The present situation in the banking system, in terms of solvency and liquidity is satisfactory. However, there is still a degree of caution regarding the approval of new bank loans. The total capital in banks in April 2011 fell by 1.6% in comparison with figures in December 2010. Expert’s opinion:“Montenegro - Expectation for summer season 2011”, Mr. Saša Radović, Managing Director of the National Tourism Organization (NTO) Investment and Privatization: Privatization Plan decisions have been set out in a document that has been accepted by the Government of Montenegro. The document is based on the Law on Privatization. The Privatization Plan for 2011 sets out the main objectives regarding privatization, as well as providing information about other aspects of the process, the methods of implementation, and the type of privatization envisaged. In the spotlight of our publication, you can find more information about the list of companies that are planned to be privatized in 2011. In order to point out the investment opportunities in the energy sector, we introduce you with oil and gas sector in Montenegro. MBO Inteview with: Mr. Slobodan Radović, President of the Montenegro Business Alliance (MBA)
Kralja Nikole 27a/4, Business Center “Čelebić”, Podgorica, Montenegro Phone/Fax: +382 (0) 20 633-855, +382 (0) 20 620-611 web site: www.ceed-consulting.com e-mail: info@ceed-consulting.com
We introduce: Regional development is a long–term process with the focus on sustainable development of certain areas. Ministry of Economy adopted the Strategy of Regional Development on July 2010, and since then numerous activities have been carried out. The main goals of the Strategy can be achieved through better management of recourses existing in the certain region. In accordance with the national development plans, the Ministry of Sustainable Development and Tourism launched the campaign “The Ecological Thread that Connects us” in order to protect the living environment and to raise awareness of the importance of nature that surround us.
Montenegro General Info
Area Position Length of border Coast line Length of beaches Climate Average temperatures of air Maximum sea temperature Average num. of sunny days Major Cities Albania Croatia
2
Geographic information 13,812 km² 41º52’ - 43º42’ lat., 18º26’ - 20º22’ long 614 km 293 km 73 km Mediterranean 27.4Co (summer) 13.4C o (winter) 27.1Co 240 Podgorica (Capital), Niksic, Bijelo Polje Border Crossing Bozaj Debeli brijeg
Serbia
Kula,Vuče, Dračenovac, Dobrakovo,Čemerno, Ranče, Bijelo Polje
Bosnia and Herzegovina Sea border
Vilusi, Vracenovici, Scepan Polje, Metaljka ports and piers: Bar, Kotor, Budva and Zelenika
Population Population in country (2011) 625,266 Montenegrin population in foreign countries 54,816 Total population 675,027 Number of households 191,047 Source: Census 2003 Transportation Airports Podgorica and Tivat Bar (line to Italy: Bar-Bari, Bar-Ancona) and Kotor Ports (line to Italy: Kotor-Barleta) Railways Bar – Beograd and Podgorica- Niksic Total railways length 249 km Total highway lenght 5,174 km National Parks Durmitor 39,000 ha Biogradska gora 5,650 ha Lovcen 6,220 ha Prokletije 21,647 ha Skadar Lake 40,000 ha
August 2011
Business Environment in Montenegro It seems that the world economic crisis remains as one of the biggest barriers for the growth of Montenegrin economy. However, the Government of Montenegro keeps making and adopting the new Laws in order to reinforce the development of the economy. It is clear that the business indicators for the second quarter of 2011 have shown a slight decrease compared to the same period last year.
Looking on a sector by sector basis, during the period of January-May 2011, and in comparison with the same period last year, two sectors recorded a growth in production: coal and stone excavation increased by 7.6% and the processing industry increased by 11.4%. However, production levels in the fields of electrical energy, gas and water recorded a decline in production of 27.8 % during the observed period. Industrial production in Montenegro in May recorded a decline under all indicators: for the period January-May 2011. When compared with the same period last year, the level of decline was 9.1%, in relation to the previous month, the level of decline was 14.5%, in relation to average monthly production, as recorded during last year, the level of decline was 29.5% and in relation to the same month of 2010, the level of decline was 24.4%. The total value of the minimum consumer basket in May 2011 was €772.59 which comprised €269.64 on food and beverages, €333.97 on non food products and services and €168.98 on the imputed value of rent. At the end of May, according to data from the Central Bank of Montenegro, out of a number of 55,602 legal and physical persons
registered for doing business, 14,754 had blocked accounts. This data refers to April 2011 and shows an increase in this area of 0.82%. The total value of debt from these blocked accounts was €302,295,020.11, which was an increase of 2.48% when compared with the month of April. The Montenegrin Parliament, during this period, worked more on other laws that did not concern business. Also, during this time, a significant number of laws were prepared with the expectation of being adopted by parliament during sessions in June and July. Some amendments that were adopted during the previous period included changes to the Law on Administrative Taxes. The most important changes related to decreases in the levels of taxes for issuing ID cards, travel documents, travel papers and visas for foreigners, as well as replacing the foreign driver’s license with a domestic one, the registration of vehicles for diplomatic representatives, etc. Also, fees were cut for the notarization of contracts by the court, and also for some construction services and types of geological work. This will have a positive impact on businesses and also on foreigners who want to establish business/reside in Montenegro as some of the previous taxes/ fees were relatively unrealistic.
Law on Regional Development One crucial law for the future development of Montenegro was adopted in April by parliament. It is the Law on Regional Development which sets out the basic standards and parameters for regional development in Montenegro. Incentives for regional development in Montenegro are set in this law through the following principles: sustainability, solidarity, equal opportunity, partnership, strategic planning, joint financial resources, evaluation, independency of local governments and publicity. In order to plan development priorities and to conduct the policy of regional development a number of activities of the local authorities are being divided into regions. Regions have been designated as the Seaside Region, the
Central Region and the Northern Region of Montenegro. The law prescribes the adoption of any necessary documents for regional development, such as the Strategy of Regional Development of Montenegro, the Regional Development Strategy and the strategic plans of individual local governments. The law also states that local governments will, in future, be ranked according to their degree of development, along with their level of competitiveness. This will be interesting for businesses, as currently such data is unavailable and would be useful for investment planning amongst other things. Also, a partnership forum for regional development will be formed and will consist of various representatives from the ministries, municipalities, the business sector etc.
Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Business Statistics and Data
Business Registration Statistics
(Number of registered companies in Montenegro as of 1st of July 2011)
Joint Stock Company
361
Limited Liability Company
24,876
Part of a Foreign Company
430
General Partnership
62
NGO
293
Limited Partnership
437
Entrepreneur
17,097
Institution
1,078
Other
109
Total
44,743
Tax Rates 17%, 7% and 0%
Value Added Tax Corporate profit tax
9%
Personal income tax
9%
Source: Commercial Court
Economy Statistics Selected indicators
2010
2011
Population (625,082 in 2003)
-
625,266
Real GDP (billion)
3.025
3.192
Real GDP growth
0.5%
2.5%
Inflation rate (average annual CPI) I 2010/ I-V 2011
0.8%
2.8%
Unemployment rate VI 2010/ VII 2011
12%
11,19%
Net FDI (million) I-V 2010*/ I-V 2011*
206
170
* Preliminary data Official currency
Euro
Source: Ministry of Finance, Central Bank of Montenegro, Monstat, Montenegrin Investment Promotion Agency (MIPA), Employment Agency
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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Frederic Bastiat (1801-1850)
Bastiat was born in Bayonne in 1801. He lost his parents when he was nine years old. He grew up with his cousins in Murgon. He worked at his uncle’s accounting company, and when he inherited the farm, he became involved in agriculture. After the revolution in 1830, he became politically active. The first paper that he wrote that caught people’s attention was published in 1844 and was entitled ‘The Influence of Custom Tariffs on England and France and the Future of Two Nations’. A year later he moved to Paris. He published ‘Cobden and League’ and started to write a series of texts for the Journal des Economistes. In 1846 he founded the Association of Free Traders and became its secretary. Together with Victor Igo, he founded an International Peace Organization. In 1848 he was elected as a member of the parliament. He published his first book, ‘Sophisms and Protection’ in 1845. In addition to many newspaper articles, he wrote a series of essays, amongst which the most famous are: ‘What is seen and what is not seen’, ‘Law, State Justice and Brotherhood’, and ‘Peace and Freedom...’ His work ‘Economic Harmonies’ was published in 1850, the same year that he died.
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Economic Freedom
Anniversary celebrating 210 year since the birth of Mr. Frederic Bastiat
Prepared by: Prof. dr Petar Ivanović, University of Donja Gorica (UDG)
Today, I meet more and more people who
know a great deal about complex things, but at the same time they know very little, or nothing at all, about the simple, essential matters that are responsible for setting more complex things into motion. It is much easier to function on a complex plane than it is to examine the simple sources of economic trends. Nowadays, there are many economists who understand the consequences of events, while very few indeed understand the causes that result in certain consequences. More and more, we have a tendency to think in a compartmentalized way, rather than to see the picture as a structured whole. Frederic Bastiat wrote about the problems in such way that he presented the problem in a very simple way, from its cause to its consequence. He was a lucid and excellent writer and an impregnable advocate of the existence of an unrestrained, free market. He believed in the destruction of protectionism and all forms of state control, and used plain and easy words that made a deep impression on his readers. His example of the broken window disproved the theory of the Keynesian economy almost a century before it was written. His brilliant and humorous essays are still popular, even today. It is as though he walked one step ahead of his time, fighting for the good of the ordinary, busy person, who, due to increased time constraints, is less and less able to dedicate time to his education. He was gifted with a clean mind, clear thought, the ability to express himself in simple language, and had an excellent sense of humor. All of these traits helped him to be accepted by his widest audience – ordinary people! Some of the best illustrations of Bastiat’s writing are his work, ‘Petition about the manufacturers of candles, wax candles, lamps, street lamps, wick scissors and the manufacturers of fats and oils, resins, alcohol, and everything that is generally relevant to lighting’, in which he discusses the absurdity of protectionism, and his essay, ‘What is seen and what is not seen’, in which he examines economic failures and the mistakes of economic analysts who avoid the invisible and only consider anything which has direct or obvious consequences. Nobel Prize Winner, Frederich Hayek, saw in Bastiat a great supporter of economic freedom. Josef Schumpeter called him “the most brilliant economic journalist that ever lived.” For Murray N. Rothbard, Bastiat’s
strong focus on money taken away by the state and the privileged interests of the state, made “his political economy his weapon in the fight for freedom along with his important viewpoint in the analysis of welfare”. Henry Hazlit described Bastiat as an economic promoter, who to a large extent exposed economic myths and became the most powerful champion of free trade in the continent of Europe. “Anyone who has ever read and understood Bastiat, has become immune to the disease of the illusion of protectionism and of the welfare state. We could use more Bastiat’s today. In fact, we desperately need them.” It is not too much to say that the “social rationalism” of Ludwig von Mises, resulted as a consequence of Bastiat’s discussions about the nature of society and of economic life. Naturally, it would not be logical if everyone had thought well of Bastiat. Karl Marx called him “the shallowest and therefore the best and most successful representative of apologists deriving from a vulgar economy.” Was this opinion the result of Bastiat being such a strong opponent and severe critic of socialism? Or did it occur due to Marx’s resentment towards a writer whose writing was clear and plain and who gained a large audience during his life? The fact is that, during the last two centuries, no one has asked what Bastiat really thought. In the case of Marx, a whole industry developed to express what Marx thought and wanted to say. But he didn’t do what he said, nor did he mean what he said… Bastiat was one of the first, and one of the few, who could arguably explain the basic principles of economy. Bastiat considered that property is an essential consequence of human nature, that a human is born with a desire to be an owner, with wishes, and with a desire for satisfaction on which his life depends. He successfully exposed the pessimism of the English classical economists, Rikardo and Maltus. He advocated free trade by saying, “The general nature of exchange is to reduce the quantity of effort in relation to the level of satisfaction achieved.” He stated that thus, life becomes richer and easier. “Free trade was never a matter of custom rates, but a matter of rights, justice, public order and property.” He fought against protectionism, saying, “Protectionism is the forerunner of communism.” Read Bastiat.
August 2011
Macroeconomic Outlook GDP According to estimates for 2011, made by the Ministry of Finance in Montenegro, GDP is expected to reach a level of €3.192 billion along with a real growth rate of 2.5%. Similar projections have also been made by the European Commission. These projections indicate that the growth in economic activity is expected, not only on the basis of improved consumer confidence, but also on the basis of growth in the area of exports. The projections are also made upon the assumptions that full capacity will be achieved by the metals industry and that aluminum prices will remain at the same level in global markets. Despite a weak first half of the year, we should be able to expect annual real GDP growth to be above 2% in 2011. Source: (Ministry of Finance)
Industrial Production Industrial output dropped by 9.1 % during the period January-May 2011 in comparison with the same period last year. This fall was caused by a fall in output in the electricity, gas and water sectors, which dropped by 27.8% during the observed period. Growth in the mining and quarrying industries, along with growth in the manufacturing industry sector (7.6 % and 11.4% respectively) was not sufficient to compesate for the decreases that were seen in the electricity, gas and water sectors.
Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Graphic 1. GDP in 2011 (I - VII) 2011… 2010… 2009* 2008* 2007* 2006* 2005* 2004* 2003* 2002* 2001* 2000*
3.192,0 3.025,0 2.981,0 3.085,6 2.680,5 2.149,0 1.815,0 1.669,8 1.510,1 1.360,4 1.295,1 1.065,7
0,0
500,0
1.000,0 1.500,0 2.000,0 2.500,0 3.000,0
* MONSTAT ** Estimates made by Ministry of Finance
Source: (Monstat)
Budget According to preliminary data from the Ministry of Finance, revenue from the Montenegrin budget and state funds amounted to € 268.8 million. Current revenue in April amounted to € 89.5 million or 2.8% of the projected GDP, while revenue from borrowing and loans from foreign sources amounted to € 179 million, and from privatisations and donations to € 0.3 million. Current revenue was 1.7% lower than expected, and in relation to April 2010, it had decreased by 3.1%. Budget expenditure amounted to € 100.4 million or 3.1% of GDP in April 2011 and it was 4.6% higher as compared to the same period in 2010. Thus, in April 2011, the Montenegrin budget recorded a deficit of 10.9% (0.3% of GDP). Source: (The Ministry of Finance)
Inflation The average annual rate of inflation, as measured by the Consumer Price Index (CPI), in January-May 2011, was at level of 2.8%. During the observed period, the rise in inflation was mostly due to price increases related to certain products/services, particulary alchoholic beverages and tobacco (9.8%), health care (10.4%) and transportation (8.4%). According to available data providing comparisons at an international level, the level of inflation rate in Montenegro (January-April 2011) amounted to 3.7%, while in the Europe Union (EU 27, EU15) was at level of 3.2%, and 2.8% respectively. Source: (Monstat, Central Bank of Montenegro)
Employment and Wages In May 2011, the gross average salary amounted to € 714, whilst the average salary without taxes and contributions amounted to € 479. In January-May 2011, the average salary without taxes and contributions showed a rise of 4.7% in comparison with the same period last year. This was, mostly due to increases in the manufacturing sector and in the wholesale and retail trade sectors. However, looking at the monthly salary level, the average salary (without taxes and contributions) fell slightly during the first quarter, and this trend also continued during the second quarter (January € 518, February € 506, March € 484, April € 473) Source: (Monstat, The Employment Agency of Montenegro)
Foreign Direct Investments (FDI) According to preliminary data, net FDI inflow amounted to € 170 million during the period January-May 2011, and was 16% lower in comparison with the same period in 2010. Total FDI inflow amounted to € 163 million, while outflow was recorded at € 18 million. Of the total FDI inflow, equity investments amounted to € 115 million, while inflow in the form of intercompany debt amounted to € 38 million. In the structure of equity investments, investments in companies and banks made up 44.5% of the total inflow, while investments in the real estate sector accounted for 26%. Graphic 2. Average salary without taxes and contributions May-11 Apr-11 Mart-11 Feb-11 Jan-11 Dec-10 Nov-10 Oct-10 Sept-10 Aug-10 July-10 Jun-10 May-10
EUR 479 EUR 473 EUR 484 EUR 506 EUR 518 EUR 515 EUR 480 EUR 477 EUR 481 EUR 504 EUR 466 EUR 473 EUR 487 440
460
480
500
520
540
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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Graphic 3. Structure of deposits by sectors, period-end, in % 6.3 5.7 6.5
Financial institutions
29.2 28.6 28.2
Non-financial institutions 6.9 6.9 6.0
General Government
52.1 53.5 54.0
Households 1.3 1.2 1.2
Non-profitable organisations
4.2 4.1 4.0
Other 0,0
10,0
20,0
II 11
30,0
III 11
40,0
50,0
60,0
IV 11
Banking Sector Total Bank Assets and Liabilities Total bank assets amounted to €2,909.6 million at end-April 2011, and €2,903.5 million at end- March. Observing data from end-March to end-February 2011, total bank assets recorded a decrease of 1.4%. In April, within the structure of total bank assets, net loans accounted for the main share (67.5%), followed by monetary assets and deposits with depository institutions (21.6%) and other bank assets (7.4%), while other assets accounted for the remainder (3.5%). When compared with figures in March, bank assets recorded increases in the areas of loan loss provisions (11.2%) and securities (8.5%). When comparing data from the bank assets structure for March and February, an increase was recorded in the following areas: factoring and forfeiting (190.4%) and loss provisions from other assets (13.6%). In April, within the liabilities of banks, deposits accounted for the main share (61.8%), followed by borrowing (22.5%) and total bank capital (10.5%), whereas the remainder (5.2%) was made up of other liabilities. In relation to the previous month, the following increases were recorded: deposits (0.7%), borrowing (0.4%) and capital (1.1%). Data from March, when compared with the figures recorded in February, showed increases in the areas of other liabilities and total capital of 14.4% and 2%, respectively. Total bank capital amounted to €305.9 million at end-April 2011, while at end-March 2011 it amounted to €302.6 million. At end-March 2011, total bank capital was 2.0% higher than it had been in February 2011.
Deposits * Viewed on a sector by sector basis, within the deposit structure, deposits by individuals were still dominant and represented about 53.0% of the total. Graphic 4. Structure of deposits, period-end, in % 41.0 40.2 40.8
Demand deposits
59.0 59.8 59.2
Time deoisits 13.3 13.3 13.5
Up to 3 months
8.3 9.1 9.2
From 1 to 3 year 2.4 2.7 2.7
Over 3 years 0,0
10,0
II 11
20,0 III 11
30,0
40,0
50,0
60,0
70,0
IV 11
Household loans
Period
X 10
XI 10
Nominal lending interest rate
9.64%
9.62%
9.62%
Lending effective interest rate
10.37%
10.35%
10.34%
Average lending interest rates
At end-April, end-March and end-February, 2011, within the maturity structure of household deposits, time deposits were the most dominant (67.2%, 68.2%, 67.9% respectively), while demand deposits accounted for 32.8% (4.11), 31.8% (3.11) and 32.1%(2.11).
Loans
Table 1. Lending interest rates, period-end, in % Average lending interest rates
Household deposits Total household deposits amounted to € 971.7 million at end-April 2011. In relation to the previous month, they recorded a growth of 1.8%. During the period February-March 201, total household deposits increased by 0.6%.
35.0 34.7 33.8
From 3 months up to 1 year
Total deposits amounted to € 1,796.8 million at end-April 2011. When comparing data from April to data recorded in March, total deposits increased by 0.7%, while compared with April 2010, there was an increase of 2.7%. Total deposits amounted to € 1,818.0 million at end-February 2011. In February, March and April of the current year, within the deposit maturity structure, time deposits were dominant (59.2%, 59.8%, 59.0% respectively). Within the structure of time deposits, the largest shares were recorded in the area with deposits representing maturity periods ranging from 3 months to 1 year ( 4.11-57.2%, 3.11- 58.1%, 2.11 – 35.0%) and for those with a maturity period of up to 3 months (4.11-22.8%, 3.11-22.2%, 2.11- 13.3%).
XII 10
Loans granted to legal persons
Nominal lending interest rate
8.55%
8.62%
8.64%
Lending effective interest rate
9.15%
9.21%
9.22%
At end-April 2011, total loans granted by banks amounted to € 2,092.1 million, which was the same as was recorded during the previous month, but was 10.8% less than in April 2010. A decline in the total number of loans was also recorded when comparing data from March with figures recorded in February 2011. The difference was 2.8%. The loan-to-deposit ratio amounted to 1.16 in April of the current year and was therefore almost the same as it had been the previous month. This ratio represents the relationship between loans and deposits. In this case loans exceed deposits by 16 %. In comparison with February, when it amounted to 1.18, the loan-to-deposit ratio improved in March 2011. The loan/deposit-plus-borrowings ratio amounted to 0.85 at end-April 2011,while at endMarch and end-February 2011 it amounted to 0.86. Within the structure of total disbursed loans, corporate and household loans were dominant at a level of around 94.0% during the period February – April. The remainder related to banks, other financial institutions, publically owned organisations, non-profitable organisations and others. Source: Bulletin of Central Bank of Montenegro (Janury 2011, December 2010, November 2010)
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August 2011
Expert’s opinion: Montenegro - Expectation for summer season 2011
The image of ‘wild beauty’ that is promoted attracts a lot of people who are interested in active vacations and in vacations in nature, in mountain areas and in national parks. This year, a special effort has been made to interest young people in the ‘After Beach Parties’ festival. This will be held for a period of one month, starting from July 15th, and will take place on 10 Montenegrin beaches. Some of the most famous names in the regional and world DJ scenes will perform at these events. Numerous festivals, carnivals and other events that take place throughout the entire country will also contribute to providing a full and interesting experience for tourists. Under the motto, “only boredom is forbidden”, tourists will be encouraged to engage in different activities. A calendar of events is available at the National Tourist Organization’s web site:
www.montenegro.travel
“
Today Montenegro is recognized as the world’s fastest growing tourist destination, both because of the growth of tourism within the GDP along with an evident increase in employment in the tourism industry, and because of the level of investment in tourist facilities in relation to the total amount of investments made. According to WTTC research (World Tourism & Travel Council), over the next 10 years Montenegro will become the fastest growing tourist country, taking into account the increase in tourism within the total GDP along with the increase in employment in this industry. It is predicted that, by 2021, tourism and other related industries will account for 36.3% of the GDP. In absolute figures, the total revenue from tourism, as estimated by this institution, will reach €1.9 billion by 2021. The number of people employed in tourism, in relation to the total number of employed persons, will grow from the present figure of 13.9% by one third, and will amount to 62,000. The increased level of investment in tourism, in relation to the total level of investment in the country,
In terms of actual revenue, this is projected to be in the region of €645 million. In order to promote the tourist season this year, the Montenegro National Tourist Organization, in cooperation with the tourist industry, has carried out intensive promotional activities both in international and regional markets. A campaign based on the promotion of an integrated tourist offer was promoted in international markets.
...
Regarding regional promotions, this year the campaign with CTU has been continued. This relates to affordable package arrangements in private and hotel accommodation, especially out of the season. We expect a further increase in the number of arrivals from the most important and eminent markets. During the first five months this year, the highest growth was recorded in the number of German tourists, where there was an increase of almost 50%. The highest number of tourists came from the European Union, and almost 8,000 of them were French.
...
Last year, in an analysis regarding potential in area of the active holiday market, six significant eminent markets were studied: Germany, France, the Netherlands, Poland, Russia and Sweden. The purpose of this analysis was to get qualitative information for further product development and for carrying out high-quality promotions. Data was obtained about the size of these markets, their active tourism potential, their tourist characteristics, and about how much they would be willing to spend on active holidays in Montenegro. Analyses were also carried out on sale channels and methods of promotion. Today, as approximately €2 billion is about to be invested in tourist projects, Montenegro is one of the first countries in the world to speak about investment in tourism on a per capita basis. According to official statistical data, last year Montenegro was visited by 1.26 million tourists. This was about 5% more than the recorded number of tourists during the same period in 2009, when 7.96 million overnight stays were recorded. Revenue from tourism accounted for €635 million or 5% more than in 2009. Regarding the
situation in the tourist market this year, an increase of 3% to 5% in overnight stays is expected. In terms of total revenue, this is projected to be worth approximately €654 million. Montenegro offers a diverse range of tourist activities. The goal now is for all service sectors to provide high quality services, and for prices to be carefully tailored. After suffering the effects caused by the recent global crisis, we are more careful about the money, especially with funds set aside for holidays. It is therefore important to maintain the image of a destination that has a high quality-service ratio. The market, this year, will almost certainly remain resistant to those who try to test the purchasing power of tourists. Serious tourist operators are well aware of this and therefore their pre-season, main season and post-season bookings are all much better. Now, those for whom tourism is just a secondary industry need to pass the test. This includes the people who only carry out tourism activities during the summer months. Prices are tailored on the basis of the category of the offer, while the out-ofseason program is adjusted to meet the various preferences of tourists. For a 7 day holiday in 2011, tourists will have the opportunity to choose, starting from exclusive hotels, restaurants and beaches, to quality accommodation in local households, for promotional price of €77 per day.
“
will increase from 16.4% to 50.8% during the next decade. This year we expect to see an increase in the number of overnight stays from 3% to 5%.
Prepared by:
Mr. Saša Radović , Managing Director of the National Tourism Organization (NTO)
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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 feb.11
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apr.11
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Trade on the Stock Exchange
Taking into consideration shares from a single company, the highest monthly trade volumes in 2011 were reached in April when shares of the bank (Prva Banka Crne Gore) reached a total of €5.38 million through 74 transactions, and again in May when company HTP Primorije Tivat achieved a total of €2.33 million in trade volume through just one transaction.
Stock Exchange Indices
Graphic 6. MONEXPIF
The new stock exchange uses the two indices MONEKS20 and MONEKSPIF. These indices were developed from the former Montenegrin stock market indices: MOSTE, NEX20 and NEXPIF.
8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 jan.11
feb.11
mar.11
apr.11
maj.11
jun.11
Graphic 7. Turnover structure 5,6%
Shares
The value of the Montenegro Security Exchange, MONEX20, upon which MSE’s 20 most liquid companies are traded, showed a downward trend from the beginning of 2011. The highest value that was reached by MONEX20 during the first five months of 2011 was recorded on January 24th at a level of 15,724 points, and the lowest value was recorded on May 24th at a level of 11,858 points. Variations in the index value have influenced all of the changes shown by the shares represented in this index, particularly those belonging to the Electric Power Company and to Telekom Montenegro.
PIFs units
MONEXPIF
Bonds
Graphic 8. Turnover and number of PIFs
shares 350.000
10.000.000
311.693
9.000.000 300.000
9.071.815
264.045
253.962 246.808
250.000
6.000.000 5.000.000
3.968.941 133.483 4.317.463
100.000
8.000.000 7.000.000
200.000
150.000 3.652.942
4.143.962
4.000.000 3.000.000
92.004
2.000.000 50.000
1.764.891
1.000.000
0
0 Atlas Mont
Eurofond
HLT Volume
The Montenegro Stock Exchange plans, this year, to draft a new index in cooperation with the Vienna Stock Exchange, with which Montenegro fosters a long-term relationship of successful cooperation. The said plan would result in calculating the index on the Vienna Stock Exchange and in publishing the results through the same medium. Companies that are includet in the index basket are automatically exposed to direct monitoring by international investors. Consequently, the plan would be for at least one Montenegrin company to be represented in the index basket index, an index which would include companies from South East Europe, and which would be calculated, published and directed worldwide by the famous index provider, Dow Jones.
MONEX20
5,3%
89,1%
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The aims of the Montenegro stock exchange in 2011, are to enrich the market, and to introduce new market material or derivative securities, which will expand the existing offer and will also refresh the market. The project plan has been implemented through cooperation with European agencies that specialize in the development of this market segment. The primary issue of foreign shares will be processed by Montenegroberza, this will be carried out through a standard IPO process.
During the first five months of 2011, the total volume of trade carried out on the Montenegro Stock Exchange amounted to €23.1 million, which was 5% less than the volume of trade that had been seen on the stock exchanges during the previous year (€24.3 million). During the same period of 2011, a total number of 6,262 transactions were completed. Three types of security were traded: company shares, privatization-investment fund shares and bonds which included government bonds. During the first five months of 2011, the greatest turnover was recorded in the area of company shares (89.1%). This was followed by investment funds at 5.6%, while the total of turnover bonds amounted to 5.3%.
Graphic 5. MONEX20
jan.11
Capital Markets
MIG Shares
Moneta
Trend
The value of this index showed significant fluctuations, including considerable growth and also considerable dips, during the first five months of 2011. It reached its highest level on February 15th with a total of 6,673 points. The lowest point was recorded on May 10th with a value of 5,074 points. The index value was influenced in such a way that a similar trend was evident in all of the six privatization investment funds.
Privatization – Investment Funds on the Stock Exchange The total volume of trade that involved PIF shares during the first five months in 2011 amounted to €1.3 million. This represented a drop of 6% when compared with the figures recorded during the same period in 2010 (about €1.39 million in trade volume). In total there were 1,530 transactions, and these included a total number of 26.9 million shares taken from all six PIFs. The most actively traded shares during this period were Eurofond, whilst the least traded were MIG shares.
August 2011 April 2011
1 concern 21 target markets insurance
40 companies employees &
20,000 agents 7,500,000 customers 16,500,000 contracts
Insurance of a New generation. UNIQA Montenegro, a member of UNIQA Insurance Group, started its activities on the Montenegrin market for the first time in February 2008, following the takeover of Zepter Insurance. UNIQA Life Insurance was founded in February 2008, and UNIQA Nonlife Insurance in June 2008. These companies provide a wide range of high quality insurance products, ranging from property to car and accident insurance - thus UNIQA Life Insurance is one of the leading insurance companies on the Montenegrin insurance market. Currently, about fifthy employees and more than sixty professional sales agents secure efficient growth by achieving the goals and plans in Montenegro. Our mission is to offer solutions for our customers in the given continuously changing economic and social environment, so that they could enjoy full and safe life. In 2010 UNIQA achieved a total gross premium of 6.092.026 EUR, while in the first quarter of this year the total of about 1,4 million EUR was achieved. Comparing with 2009, UNIQA
growth rate is 75%; Montenegrin insurance market growth rate for the same period is -4,63%, which is less than in previous years. Participation of UNIQA insurance premium in the total insurance market of Montenegro increased from 6,10% in 2009 to 9,16% in 2010. UNIQA Life Insurance has a share of 15.63% in the total life insurance of Montenegrin market. UNIQA Non-life insurance has a share of 8,16%. Despite the difficulties caused by economic crisis, UNIQA recorded a significant growth of about 60% in the first quarter of 2011 over the same period in 2010; UNIQA Life Insurance achieved growth of 35%, and UNIQA non-life achieved growth of 67%. International Agency for the Evaluation of financial standing Standard & Poor’s (S&P) confirmed, on December, 2010, UNIQA Group’s financial strength rating by assigning “A” with stable outlook. Assessment of the S&P financial strength is based on standard unchanged ratings to parent companies of UNIQA Group.
KOTOR
UNIQA Montenegro: Branch offices
Companies: UNIQA life insurance UNIQA non-life insurance Legal type of the entity: Joint Stock insurance company Year of establishment: UNIQA life - 2008. UNIQA non-life - 2008. Owners UNIQA life: UNIQA International BeteiligungsVerwaltungs GmbH UNIQA a.d.o. Beograd Owners UNIQA non-life: UNIQA International BeteiligungsVerwaltungs GmbH UNIQA International Versicherungs Holding GmbH Executive directors: Mrs Nela Belević, UNIQA non-life Mr Željko Labović, UNIQA life Number of employees: 90 Number of branch offices: 12 Main activity: Life and non-life insurance
Address: Bulevar Svetog Petra Cetinjskog 1a/IV, 81000 Podgorica, Montenegro Phone: +382(0)20 444 700; Fax: +382(0)20 244 340; GSM: +382(0)67 201 449; E-mail: info@uniqa.me; Internet: www.uniqa.me
Accounts: UNIQA life insurance: 555-738-69 UNIQA non-life insurance: 555-1915-30
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MBO Interview with Mr. Slobodan Radović, President of the Montenegro Business Alliance (MBA) MBO: This year the Montenegro Business Alliance celebrates the 10th year since its foundation. Could you brief us about the organization? This September, the Montenegro Business Alliance (MBA) is celebrating the 10th year of its work. MBA was founded through one of the USAID projects and implemented by the Center for International Private Enterprise (CIPE) in Washington and by the Center for Entrepreneurship and Economic Development (CEED) in Podgorica. The main reasons, I would say, for founding MBA were that the private sector was under represented in decision making processes and that a disorganized private sector had just started to develop in Montenegro. The private sector needed an organization to represent it to the government, but it also needed something to bring together individuals to create a unified voice. Based on these facts, and after series of preparatory meetings, the Montenegro Business Alliance was been founded by 10 individual companies at a meeting in Podgorica on the 24th of September 2001.
MBO: What are the main activities of the organization? Mr. Slobodan Radović, President of the Montenegro Business Alliance (MBA)
Short biography: Mr. Radovic was born in Herceg Novi, Montenegro in 1958. After completing studies he worked until 1985 in local construction company “Prvoborac” one of the most successful firms in Montenegro in that period. Since 1985 he moved into private sector, mostly tourism, and step by step developed his own company “Kruso” which currently employees 65 people. Since 2006, Mr Radovic expanded his business operations in the area of construction generating additional 70 new jobs. Mr. Radovic is President of the Montenegro Business Alliance (MBA) since it was founded in 2001, and member of the water polo selection committee. He is married and has three kids.
What are your plans for the future? MBA will continue to support its members and to advocate the improvement of the business environment. In the future, as we approach EU membership, we will face additional challenges and will need to use different strategies to fight these challenges. It is certain that MBA will continue to advocate for change in Montenegro and that all our efforts will be focused on our member’s needs and on the improvement of the overall environment in Montenegro.
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The activities of the organization derive from our mission. The mission of the Montenegro Business Alliance is to improve the quality of life for all Montenegrin citizens through economic growth and prosperity. The organization aims to work in partnership with the public and with the private sector as well as with international groups and individuals to bring stability and sustainability to the Montenegrin economy. We can distinguish between the activities that are related to lobbying for the improvement of the business environment and those that are more related to the promotion of our members, their businesses and Montenegro as a country in which to do business. There is no distinct line between these activities since all of MBA’s activities are based on the needs of our members. The long term goals of MBA are: - to help to create a healthy business environment for private business owners, who represent the main pillar of development in the Montenegrin economy; - to improve the environment for investment; - to encourage a greater level of participation from the private sector in creating a new legal framework; - to participate in the implementation of reform laws; - to be a leader in achieving a national consensus on the priorities of the future economic development of Montenegro; - to continuously expand the spectrum of services to its members; - to build private-public partnership; and - to continue to increase its membership. Our work is conducted through a Board of Directors which has 15 members and also through our MBA offices. Currently, MBA has 2 offices, one in Podgorica and one in Kotor with a total of four fulltime employees.
MBO: Who are your members? First of all, let me say that MBA has a voluntary membership structure and this keeps us motivated to work and to represent the interests of our members since. If they are not satisfied with our work, MBA will no longer be able to exist. This has always kept us alert during the last 10 years. MBA has about 500 members that come from different industries, sectors, branches and regions of Montenegro. Also, MBA has members that are not physically present in Montenegro but that do have a commercial interest in Montenegro, and are therefore willing to be present through the work of a business association. MBA is a coalition of Montenegrin companies, business associations and international companies. MBA has improved the economic condition of businessmen and women in Montenegro by creating a better business climate in which companies can grow and prosper. This is good for all Montenegrin citizens, as these MBA companies represent over 20,000 workers, and MBA members collectively create more than 40% of the Montenegrin GDP.
August 2011
MBO: Can you tell us about some of your success stories over the last decade? MBA was very active during the last decade in legal matters, and worked on more than 100 different laws, on numerous regulations, local decrees etc. Our work was primarily in the area of business legislation and concerned regulations that have a direct impact on company performance. Among some of the different things that MBA did as a pioneer in this field, one of the most important was to influence a decrease in taxes and contributions on wages in 20034. I can say that the first cuts on taxes and contributions were, in the main, due to direct pressure from MBA. Also, MBA influenced the first significant cuts in corporate tax, personal income tax and taxes at a local level. Later on, different organizations took much of the credit for work done by MBA, but what satisfies us the most is that the ideas that were put forward and implemented by MBA almost a decade ago, are now being taken up by others. That strengthens us to continue developing our activities over the next decade. An important part of our work relates to developing the conditions for building micro hydropower plants in Montenegro. Since the activities carried out by MBA have resulted in the building of one small hydropower plant, we can be satisfied that, in cooperation with the government and local municipalities, we have successfully removed existing barriers have opened up a clear path for potential investors in that field.
MBO: Do you publish your activities? Publishing is one of the keystones of our activities. From the very beginning we were aware that without publishing our work, everything would be forgotten. Since our organization is not specific to any single project or specific time frame, we have made additional efforts to create a variety of publications in which to present our work. We were also pioneers in that area. We were the first organization to publish an annual report together with a financial report, and our activities were regularly published in quarterly editions of the Business Insider. We presented our legal work in a very carefully prepared publication called the Business Agenda. MBA published its first Business Agenda in 2003 and we were happy that some parts of it were later incorporated in the government agenda. We continued to publish our agenda and thus presented our future legal aims. We also, simultaneously, highlighted problems that needed to be solved in the economy through close cooperation between the business sector and the government. We also publish an annual publication for our members that includes contact information and collates all the necessary information regarding different institutions in Montenegro. MBA is the first and only organization in Montenegro that publishes an annual directory of its members. This is called the MBA Business Directory. This year, MBA published its eighth edition of the Directory which included more than 230 members. The Directory serves as a promotional tool as some of the best Montenegrin companies are represented in it.
MBO: Is there enough cooperation between similar organizations? There is enough work for every organization present in Montenegro for sure! Cooperation from institutions that support the private sector in Montenegro exists, but this can always be improved. MBA is open to cooperation and will do whatever it can to establish partnerships to improve business conditions
in Montenegro. We also have an excellent level of cooperation with other similar organizations in the region. We are working on different issues with them but I think that the most valuable thing for our members has been the organization of business to business meetings (B2B). Since 2001, MBA has organized more than 20 of these meetings with different companies in the region and I can say that our members have been extremely satisfied with this service. MBA is also internationally recognized through the awards it has received for its work. MBA was a winner in the category entitled Market Solutions to Poverty, in a competition held by the US Atlas Foundation. The award was given for MBA’s initiative, ‘10% for Montenegro’, which aimed to reduce all taxes in Montenegro by 10%. The award was gained in an international competition with more than 200 competitors. The American Society of Association Executives (ASAE), within its program ‘Associations Make a Better World’, declared that MBA was the overall winner of the Business Agenda Award in 2004.
MBO: What is the relationship of your organization with the government? When we started our work, the government was fairly reluctant to accept that the business sector should have input in the decision making process. Consequently, it took us a long time and a lot of effort to convince the government that business participation is necessary in order to create better laws. In this way, regulations should be good as they have been practically tried and tested. Currently we are quite satisfied with the situation regarding business participation in this process. Primarily, through the work of the Council for Regulatory Reform, representatives from the private sector can put forward their problems/solutions to be addressed by different ministries. What we are not completely satisfied with is the speed of the reforms, the amount ofl bureaucracy and the priorities that have been established. We do agree that European integration is a key success factor but we do not want to forget important work that is necessary for the business environment and work regarding the removal of existing barriers. MBA will always criticize the government, but will also offer solutions to problems that are faced by the private sector as we see public private partnership as a key solution to existing problems.
Montenegro Business Alliance, 81 000 Podgorica Kralja Nikole 27a/4, Poslovni centar “Čelebić“, Sahat kula Tel/fax: 020 622 728; 622 738 E-mail: mbapg@t-com.me Montenegro Business Alliance, 85330 Kotor Stari grad 372 Tel/fax: 032 323 823; 304 208 E-mail: mbako@t-com.me
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In the Spotlight: Privatization Plan for 2011 The main objectives of privatization are to increase the competitiveness and efficiency of companies, to promote foreign investment and entrepreneurship in all areas, to increase employment and to improve the standard of living. All privatization that is to be carried out in 2011 will be based on the methods of implementation and the type of privatization. The companies that are selected will be adjusted to meet free market requirements which will include the following: the sale of shares and assets by public tender, the sale of shares through the stock exchange, and the sale of shares and assets by public auction. The models for restructuring companies in the area of public utilities will only be defined after the new Law on Utility Activities has been adopted and after a new strategy, aimed at involving the private sector in public utility activities in Montenegro, has been implemented. The Privatization Plan anticipates that, regarding companies that are being privatized by public tender, the resolution of social issues should be included as a contractual obligation. It is also expected that, in such cases, credible guarantees and termination clauses to cover the breach of contractual obligations will also be included. Furthermore, regarding other types of implementation and other types of privatization, with the exception of the stock exchange, the resolution of social issues will also be an essential and compulsory requirement. A public auction procedure will be used for the sale of part assets, shares or stakes in companies, on the basis of prior decisions made by their owners. Decisions on the sale of assets exceeding €50,000 will be subject to approval by the Privatization Council in cases where the state or state funds are the majority owner. Regarding the valorization of tourist locations/ companies through public-private partnership and the sale and valorization of former military assets, the tender commission in charge will conduct the selection procedure, based on decisions made by the Council for Privatization and Capital Projects, by international public tender for the following locations/companies:
Based on a decision brought forward by the Council for Privatization and Capital Projects, the methods for implementing privatization in certain specific companies are presented in the table below: Companies to be privatized by public tender AD "Montecargo" Podgorica ( railway transport)
"Port of Bar" JSC Bar
"Montenegro airlines", JSC Podgorica (air transport)
N.I.G. "Pobjeda" JSC Podgorica (newspaper publishing)
"Montepranzo-Bokaprodukt" JSC, Tivat (agriculture, trade and services)
AD "Zora" Berane (production of dairy products)
JSC "Container Terminals and General Cargo" Bar (railway transport)
HG "Budvanska Rivijera" JSC Budva (tourism- hotels and other similar accomodation)
"Main Post of Montenegro" LLC Podgorica (postal services)
HTP " Ulcinjska Rivijera" JSC Ulcinj (tourism–hotels and other similar accommodation)
"Maintenance of railway vehicles" JSC, Podgorica (railway transport)
" Institute of Ferrous Metallurgy JSC Nikšić (technical research and analysis)
"Railway Infrastructure of Montenegro" JSC Podgorica –Maintenance Unit (railway transport)
Electroda Plant "Piva" JSC Plužine
"Adriatic Shipyard" JSC Bijela (construction and repair of ships)
"Barska Plovidba" JSC , Bar (maritime and coastal transfer of cargo)
Companies to be privatized through trade on the stock exchange Građevinsko Preduzeće JSC „Gorica“ Podgorica (construction industry/civil engineering)
Metalprodukt JSC, Podgorica (repair of household tools)
JSC Papir, Podgorica (wholesale trade)
Montenegrosport JSC,Bijelo Polje
JSC Rudnici Boksita, Nikšić (mining and quarrying)
Pekara JSC , Nikšić
Agrotransport Podgorica,Podgorica (road transport of cargo)
Poliex JSC, Berane (production of explosives)
Berane JSC Berane
Sokara JSC Nikšić
Dekor, Rožaje (production of paper products)
Trgokoop JSC, Podgorica (retail trade)
HTP "Velika Plaža" JSC Ulcinj (tourism) Company to be privatized through sale at auction: "Petoljetka stan" LLC, Bijelo Polje
Sale and valorization of former military assets Military-tourist complex "Valdanos", Ulcinj
Lalovina Headquarters - PKL, Herceg Novi
Warehouse "Kožara" – Nikšić
Warehouse "Dobre Vode" – Bar
Military-tourist complex "Ostrvo Cvijeće" and land "Prevlaka" – Tivat
Lalovina – above the main road - Meljine, Herceg Novi
Shooting Range "KunovoLukovo" – Nikšić
Building Facility UPT "Crnci" – Podgorica
Military-tourist complex "Bigovo" Trašte, Kotor
Warehouse Studeničke Glavice – Nikšić
Motel Šas with Vladimir Farm – Ulcinj
Island Mamula - Herceg Novi
Barracks "Orjenski Bataljon" - Kumbor
Warehouse "Moćevac" - Mali logor, Pljevlja
Barracks “Mediteran”- Žabljak
Warehouse "Rakite" - Herceg Novi
Barracks "Gornji Klinci" - Herceg Novi
Warehouse "Kopita" – Kolašin
Warehouse "Morinj"- Kotor
Valorization of tourist sites/companies through public-private partnership Ada Bojana; Velika Plaža: Site located between Njivice and Herceg Novi; Cove Masline- „Utjeha“ for Cape Odrač in Bar; Institute for Physiotherapy and Rheumatology Dr „Simo Milošević“ Igalo AD; Bjelasica- Komovi Site
Source: Privatization and Capital Investment Council of Montenegro, www.savjetzaprivatizaciju.me
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August 2011
In the Spotlight: Regional Development of Montenegro Prepared by: Mrs. Nina Vujoťević, PhD, Deputy Minister of Economy, Sector for Development The policy aims to achieve harmonious, balanced and sustainable development, whilst also strengthening the economic and social cohesion of the EU. Full membership of the EU, supported by targeted regional policies should ideally show concrete results. The main goal of the regional development policy of Montenegro is to increase the quality of life in the territory of Montenegro. This should be done in such a way as to ensure socio-economic development in accordance with the principles of sustainable development, by creating conditions that will enable and strengthen competitiveness in all parts of the country and by implementing its own development potential. In order to achieve these objectives, the Government of Montenegro, as a candidate country for EU membership in 2010, adopted the Regional Development Strategy for the period 2010-2014.
the way local governments should calculate their development indices has been sent to the Government Commission for Economic Policy and Financial System for consideration. A proposal for a decision to be made by the Partnership Council for Regional Development was also sent at the same time. Simultaneously, the Ministry of Economy, in cooperation with the Union of Municipalities of Montenegro and other EU experts, prepared a proposal for a rulebook concerning the methodology for developing local government strategic development planning. It is anticipated that this will be adopted in the near future.
It is important to mention the Regional Development Act witch came into force in April 2011. The adoption of the Regional Development Act is important for creating opportunities to recognize and encourage the development potential in different parts of Montenegro and also to affirm active project work in areas where there are clearly problems with development. The Regional Development Act is based on the assumption that development must be initiated by the goals, characteristics, attributes and experiences of a local community.
By the end of the year, the Ministry of Economy is expected to make suggestions about other laws that will allow full implementation of the new act.
EU and EU Development founds Development projects supported by EU funds should be part of long-term development programs developed by local communities or by a country applying for EU funds. Thus, the Regional Development Act seeks to promote strong partnerships and cooperation between the levels at which regional development is planned, in order to find the best possible way of maximizing the development potential of the entire national territory. In accordance with the above mentioned, the Ministry of Economy has immediately started to implement and adopt the secondary legislation that relates to the act, now that the act has come into force. Thus, a draft of the regulations regarding
The development of this strategic document will take about six months to prepare, and will provide an important basis for applying for development projects that require funding from the state budget, from EU funds, or from development banks, etc.
Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Crnojevica River (Rijeka Crnojevića) St.Stefan island
At the same time, the Ministry of Economy conducted a series of activities within its jurisdiction related to the increase of competitiveness in the areas of local government and in the development of small and medium sized enterprises. Some of these activities refer to strategic plans and to action plans for the introduction of clusters in Montenegro, especially in the northern region of the country. This is one of the most important factors of regional competitiveness that receives significant support from EU funds. Activities conducted by the Ministry In general, during the first year following the adoption of the Strategy of Regional Development of Montenegro, numerous activities have been carried out that represent its successful implementation. In addition to the Ministry of Economy, a very important role in the implementation of the strategy has been played by a variety of other relevant ministries, the Investment-Development Fund of Montenegro, the Employment Agency of Montenegro, the Montenegrin Investment Promotion Agency and by other bodies and organizations that are engaged in activities that encourage regional development.
Durmitor Mountain and the Black Lake
Ministry of Economy Rimski Trg 46 81000 Podgorica, Montenegro Tel: 020 482 106, Fax: 020 482 232 E-mail: nina.vujosevic @ mek.gov.me Web: http://www.minekon.gov.me
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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Privatization and Investments This is testimony to the healthy economic political situation that the new government, led by Prime Minister Mr. Igor Lukšić, is promoting. In an interview with Reuters, Mr. Lukšić stated that Montenegro is expecting €600 million of foreign investment to be made in real estate, energy and tourism over the next couple of years. The Montenegrin economy will grow this year by around 2.5%, while during next year the level of growth is expected to reach somewhere in the region of 4%. This growth will be the result of foreign direct investments.
The new investors will clearly benefit from the new reforms and economic changes that are being made and the Montenegrin government is keen to ensure that it looks after the interests of investors. Being a small country, Montenegro is capable of making reforms that will benefit not only the government but also foreign investors. Already, many projects in the areas of energy and tourism are well underway.
Investments Exploration for Natural Gas is Getting Closer to Realization The Ministry of Economy of Montenegro and the consortium Trans Adriatic Pipeline have entered into a Memorandum of Understanding and Cooperation to explore the opportunities for developing a natural gas market and for enhancing the diversity of supplies in South East Europe. The Memorandum of Understanding for Cooperation is a significant step towards increasing the security of supply and for ensuring the diversification of gas resources in South East Europe. As natural gas has various applications in different fields it could also be used to underpin the further development of the Montenegrin economy in line with today’s environmental requirements.
The Battle for Black Gold in Montenegro Begins Companies such as Gazprom (Russia), Statoil (Norway), Total (France), ENI (Italy), Novatek (Russia), INA (Croatia), HESS Corporat (UK), and Sterling Energy PLC (UK) have sent letters of interest regarding the exploration of Montenegrin oil and gas reserves. This comes as good news, considering that regulations for the application of the law “On the Exploration and Production of Hydrocarbons” is currently being prepared. It is planned that this project will have a clear plan by the end of this year, or by the beginning of next year, when the results of the competition for this matter will be announced.)
Kempinski Signs Provisional Contract for a Montenegrin Resort As a capitol of tourism in Montenegro, Budva represents a great opportunity for foreign investors in term of tourism development. According to local authorities’ estimations, approximately EUR 1bn could be invested in building elite tourist facilities. The hotel chain Kempinski will sign the contract with the Russian company Was Invest, which had purchased about 200,000 square meters of land in Smokvica Montenegro. Provisional contract between these two parties has already been signed, while the formal one will be drafted in Berlin.
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Great Interest of the Italian Companies for Investing in Montenegro Montenegrin Investment Promotion Agency (MIPA) supported by Italian Institute for Foreign trade (ICE) held a conference about trade and economic opportunities in Montenegro on 8th June 2011. Over 150 Italian companies participated (a remarkable outcome for a country with only 600 thousand inhabitants). The event, which was opened with a country video presentation produced by MIPA, was widely considered to have been a success. The event had a very pragmatic approach. In the morning speakers from MIPA talked about investment opportunities and the facilities currently available from international organizations such as EBRD, WB and IEB. In the afternoon there were a number of B2B meetings with Italian companies, in which much more information was provided as a result of individual company requests. Later in the day, there were also a number of interviews including participants such as Petar Ivanović, CEO of MIPA and Luca Gentile, ICE officer for Italian Investments in Montenegro. Currently about 20 applications for Practical Cooperation in trade and investment have been received at MIPA. A delegation of Italian companies will therefore visit Montenegro in the autumn to check out its interesting potential. The contacts that were made with the representatives from the international institutions have helped to trigger a lively exchange of information and an interest in participating in future seminars in both Montenegro and in Rome. More specifically, the next planned event is being organized with the Abruzzo region and is expected to take place in Podgorica on July 7th. The event is about fishing and will involve the EBRD at the invitation of the ICE officer posted in Montenegro. It is also expected that there will be another event in Rome on September 15th at the Zero Emission Fair. This event will be attended by an expert from the Ministry of Energy of Montenegro. The Italian daily newspaper “La Repubblica” is about to publish an article about Montenegro, and its great upward trend in economic terms.
August 2011
KfW Bank Plans to Implement a €12.5 million Project in Montenegro Representatives from KfW bank and the Montenegrin Minister of Finance, Dr Milorad Katnić, met to discuss their previous cooperation which dates back to 2001. So far, their cooperation was only in the fields of infrastructure financing (energy and supply) and in funding local banks. However, future cooperation between KfW and Montenegro might well take place in the project “Water Supply and Wastewater Treatment on the Coast”, as well as with the energy sector. KfW is very interested in financing the “Energy Efficiency in Public Buildings” project, in which €12.5 million will be invested. The project will include the energy – efficient rehabilitation of about 30 school buildings in Montenegro. The start of this project is expected to take place on the fall 2011.
Turkish Investors Interested in the Airport at Berane A project for the reconstruction of the rundown Berane airport, which is located in North of Montenegro, seems to be of great interest to Turkish investors. Rafet Husović, minister in the Government of Montenegro, said that Turkish investors want to reconstruct the rundown airport at Berane. Official information about the investors has not yet been published, but according to some sources in the government, the Turkish company, Limak Holding, might be preparing to enter the Montenegrin market along with Turkish Airlines, which is rumored to be taking over Montenegro Airlines. The goal of this project is to make Berane airport functional for civilian flights by commercial airlines.
Brazilian Investors Interested in the Port of Bar The Port of Bar is receiving a lot of international attention from various investors all around the world. The newly appointed ambassador for Brazil in Montenegro, Alesandro Ador Neto, has expressed a positive interest in the Port of Bar as a potentially important traffic intersection that could connect Brazilian companies with Montenegro. Ambassador Ador Neto has visited the Port of Bar and stated that it could play a very important role in strengthening relations between the two countries. Being one of the biggest economies in the world, as well as one of the fast growing economies, a good relationship with Brazil would represent a positive trend in the continually rising Montenegrin economy.
Subsidies Loan for Agriculture The Montenegrin Minister of Agriculture and Rural Development, Tarzan Milosevic, has stated that the ministry should put into motion an initiative that would ensure the subsidy of interest on bank loans to companies. Support for purchasing certain agricultural products, as well as projects that are supported through MIDAS would be the subject of such subsidies.
Tenders Invitation to Tender for Long – Term Lease of Tourism Complex “Valdanos” Ulcinj The Government of Montenegro, the Privatization Council and the Capital Investment Council have opened a tender for bids to local and international investors for the long – term lease of the tourist resort “Valdanos” in Ulcinj. Bids will be received from investors that have proven financial standing and a track record in design, construction and the management of complex tourist facilities. The length of the lease is 30 years, with the possibility of a lease extension. Some of the conditions set out for bidders include the following: they have to already be an international hotel operator; they have to be a well known brand; they have to have five years of continuous experience in the design, development and management of 4+ or higher level hotels. The Valdanos cove is situated 4 km southwest of Ulcinj, and represents one of the most beautiful natural resorts in Montenegro. Its area is approximately 346 ha and it is covered by numerous olive trees. The bids are to be delivered by September 19, 2011.
Invitation to Tender for 63.5273% Share of the Capital and for a Long Term Lease of 90 Years, for a Land Currently Owned by the Hotel and Tourism Company HTP “Ulcinjska Rivijera” AD A public invitation to participate in the above tender was announced by the Government of Montenegro for the privatization of the company “Ulcinjska Rivijera” AD, along with the offer of a long – term lease of the land complex of the same company. The privatization will involve selling the government’s share of “Ulcinjska Rivijera” AD which is worth 63.5273% of the total capital of the company, and is represented by 968,402 ordinary shares. The second part of the tender refers to the long – term lease of the land owned by the state of Montenegro. For further information, interested investors can find more details in the tender documents. The core business of “Ulcinjska Rivijera” AD comprises: hotels, motels and restaurants, and interested investors should have a background in this sector. The deadline for submission of the bids is September 19, 2011.
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We Introduce: The Ecological Thread that Connets us Prepared by: Ivana Vojinovic, M.Sc. Deputy Minister Ministry of Sustainable Development and Tourism
On the 20th September 1991, in Žabljak, Montenegro imposed upon itself a very pleasant responsibility. It declared itself to be an ecological state. 20 years later, the jubilee of this event needs to be marked, and the obligations arising from our constitutional commitment as an ecological state need to be reactivated. Consequently, the Ministry of Sustainable Development and Tourism, together with a group of NGOs, has launched a campaign entitled “The Ecological Thread that Connects Us”. The campaign has been launched to activate our dormant eco-instincts, to reaffirm our willingness to preserve the natural beauty of Montenegro and above all to achieve ecological unity within our entire society and to prevent environmental accidents that potentially threaten our environment. Certainly, to achieve such a goal will require a significant joint effort from all of us who are living in Montenegro. Our desire to achieve such a goal is not primarily for our own benefit, but is rather for the benefit of future generations. Consequently, the main idea of the campaign "The Ecological Thread that Connects Us" is to restore and activate the ecological spirit of Montenegrin citizens, with the aim of making ecology an integral part of our way of thinking, our everyday behavior, and our personal culture. The desired outcome would be for ecology to be seen as a way of life, a lifestyle, and not as a short-term project. When such a lifestyle is adopted, Montenegro will then truly become an ecological state and will also become the ‘green spot’ in this part of Europe. The underlying logic of the campaign itself is based on a strong belief that a philosophy of healthy environmental living along with sustainable development should help to generate a general social consensus coupled with a common philosophy regarding the future development of Montenegro.
The aim of the campaign "The Ecological Thread that Connects Us" is not a singlestage clean up of our living environment, but is rather about changing our consciousness regarding the importance of the environment. This will hopefully, in turn, lead to the campaign having a long lasting effect, and also to ensuring that the future economic development of the country will be firmly based on ecological principles and postulates. Without doubt, there are some significant environmental issues in Montenegro and these can only be resolved only by the joint action of all the members of the society. Anyone who acts irresponsibly has to be aware that such behavior will not only affect the quality of his/her life, but will also affect the life of future generations. A level of
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personal commitment from all of us is necessary to prevent, or at least to mitigate, the consequences of environmental pollution. The campaign places a particular emphasis on the youngest residents in Montenegro and the fact that they should be taught everything possible about their environment. Through a series of workshops and eco-lessons within the campaign, we hope to contribute to forming the type of person who will think in the right way about how to improve the quality of the environment. Although the campaign was initiated by the Ministry of Sustainable Development and Tourism, the main idea was for all of the activities were developed through partnerships with the most active NGOs working in the field of protecting and improving the environment in Montenegro. Since all of the environmental issues are common to all of the municipalities in Montenegro, one objective of the campaign was to involve NGOs from all parts of the country. The campaign "The Ecological Thread that Connects Us" encouraged everyone to take part, with the aim of raising environmental awareness. Many diplomatic missions, companies known for conducting socially responsible business such as mobile phone operators, and many public figures also took part. During the campaign the following days were celebrated: Earth Day, Renewable Energy Sources Day, Trees and Birds Day, and Climate Change Day. In connection with this, some Municipalities such as the Capital City of Podgorica, Budva, Bijelo Polje, Danilovgrad, Tivat, and institutions such as the Environmental Protection Agency, PE National Parks of Montenegro and others implemented a variety of activities under the visual
identity of the campaign "The Ecological Thread that Connects Us." The media occupies a special place within the environmental awareness campaign as well as having its own specific mission related to the campaign. The role of the media is incredibly important in the implementation of environmental policy because it affects the development of individual environmental awareness and culture. It also raises environmental awareness and culture within the entire Montenegrin society. The campaign “The Ecological Thread that Connects Us'' should be a major step forward in creating environmentally aware individuals who have a responsible attitude towards nature. The campaign is only the start of an ongoing process of influencing the public in the area of environmental awareness. A joint and concerted action by all is both necessary and appropriate. One thread may not mean much alone, but by connecting several threads we will be able to change the society for the better. Therefore, let us connect as many threads as possible to preserve what is ours, the nature of Montenegro.
IV Proleterske brigade 19 81000 Podgorica tel: 00 382 20 446 232 fax: 00 382 20 446 215 mail: ivana.vojinovic@mrt.gov.me web: www.mrt.gov.me
August 2011
We introduce: Oil and Gas in Montenegro According to the Montenegrin Energy Development Strategy, it is estimated that there could be up to 7 billion barrels of oil deposits in Montenegro, and be up to 425 billion cubic meters of natural gas deposits present in the seaside area. Therefore, further research regarding these resources is necessary in order to prove their existence. During the last couple of years, the energy sector has become one of the most important and interesting sectors for the future development of the Montenegrin economy. Geological oil and gas explorations began in 1949 and covered the area including Crmnica and the Municipality of Ulcinj. A seismic surveys were carried out between 1973 and 2002 over a distance of 1,220km at depths of up to 5309 m. In addition, many studies, analyses and detailed expert reports have already been prepared. These analyses have shown the need for a new and intensive research program. If research results were to show the existence of natural gas, a system for supplying natural gas in Montenegro would develop much more quickly than as a result of any of the other options already present for importing energy resources. Gas supplies are envisaged in the future for the following cities: Podgorica, Niksic, Tivat, Bar, Budva, Cetinje, Kotor, Herceg Novi and Ulcinj.
Picture: Geological Promise
The search for oil and gas, along with the production cycle, consists of several phases: exploration, appraisal, development, production and abandonment. In order to start commercial activities it is necessary to have knowledge, technology and experience because this process requires a lot of investment. Montenegro does not possess the necessary technology, nor does it have experience of producing oil or gas. Therefore it will be necessary to carefully select the future explorer in such a way as to establish both long term and beneficial cooperation. The next step for the Montenegrin government is to publish a new call for proposals in order to find an investor who is both willing and able to take on the concession for exploring and producing oil and gas. Montenegro has definitely made an important step forward regarding the development, exploitation and usage of its resources.
An action plan for the period 2008-2012 was created on the basis of the Energy Development Strategy. It prescribes the following phases/ activities and government obligations. In order to achieve its planned activities, the Government has improved the legal framework as follows:
• The Law on Concessions was adopted in 2009; • The Law on Exploration and on the Production of Hydrocarbons was adopted in 2010; • Preparation of the Model for Concession Contracts has now started (including exploration work for the Concession Contract and for the Production Concession Contract). An exploration concession contract can be awarded to one or more bidders for a period of up to 2 years, whereas a production concession contract is awarded on the basis of exclusive rights for a period of up to 30 years. The exploration phase last 6 years for on-shore research and for 7 years regarding off-shore areas, with a possible extension period of up to 2 years. The production phase lasts for 20 years with a possible extension period of up to 10 years; • Two sets of fees are payable: acreage fees and royalty fees (for producing oil and/or gas). Fees for producing oil and/or gas are based
Activities of the Ministry of the Economy The Ministry of Economy published a tender for the research of possible oil and gas sites along the Montenegrin coast. Letters of interest were sent in by 18 world renowned companies. The bids will all be opened by the end of summer, 2011. Letters of interest were submitted by well-known oil companies from the following countries: Gazprom (Russia), Statoil (Norway), Total (France), ENI (Italy), Novatek (Russia), Naftna Industrija Srbije (Serbia), HESS Corporation (USA), Trajan Oil&GasEnergian Oil&Gas (Great Britain and Greece), Edison SpA (Italy), Geopartners Limited (Great Britain); TDE Services (Hungary); Hellenic Petroleum (Greece); Sterlin Energy PLC (Great Britain); Northern Petroleum PLC (Great Britain), INA (Croatia), and Premieroil (Great Britain). Interest in oil and gas research has also been expressed by the Hungarian company, MOL, which will soon establish a joint company with the Montenegrin state-owned company, Montenegrobonus.
The tender for the selection of the most advantageous bid for provision of consulting services for implementation of the tender procedure for exploration and production of hydrocarbons in the offshore of Montenegro was published in June 2011 by the Ministry of Economy. The deadline for the submission of letters of interest was July 22nd, 2011. The consultant’s main responsibility will be to help to move the whole process forward until a contract has been signed with the future concessioner. The tender for consultants has been announced several times, but there has been a need to further prepare both legal and sub-legal regulations in order to make the legal framework fall in line with the best of international standards. One more tender offer will be published by the end of the year regarding the exploration and exploitation of oil and gas in the Montenegrin coastal region.
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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Business News Promotion of Domestic Products It was stated by the Montenegro Business Alliance that there should be a focus on the stimulation of the development of the food sector. The Alliance stated that this should be achieved by supporting domestic production and by stimulating chains of shops to increase their export of domestic products. Ultimately this is necessary in order to increase the competitivety of Montenegrin food companies. In addition to the above, it is also improtant to encourage consumers to develop the habit of purchasing domestic products in Montenegro. The managerial and marketing services of companies in the food sector are the most responsible for achieveing this, but the awareness of Montenegrin consumers could also help to develop the domestic economy by purchasing domestic products.
Montenegro Dedicated to the Open Market Montenegro is dedicated to the open market and the private sector as the drivers of economic growth and development. When opening the 2nd Forum of Mediterranean countries, it was stated that Montenegro is going in the direction of reducing taxes and customs tariffs, proportional tax, the free flow of goods and capital. The title of this year’s forum was “The Development of International Networks”. This highlighted the fact that Montenegro has already changed a part of its legislation by achieving its goal of removing certain provisions that could have been seen as business barriers.
Prices in Montenegro are Slightly Lower The average prices of goods and services for personal consumption in Montenegro were 0.1 percent lower in May than they were in April. Consumer prices increased by 3.6 % in comparison with May 2010, and by 3.1 % in comparison with December 2010. In the main groups of products and services, an increase was recorded in the price of clothes and shoes (0.2 %), alcoholic beverages and tobacco products (0.1 %), restaurants and hotels (0.1 %), while a decrease was recorded in healthcare (1.2 %), transport (0.7 %), culture (0.4 %), furniture and housing equipment (0.3 %) and education (0.1 %).
Increase in Foreign Trade by 19% Total foreign trade in Montenegro, during the period from the beginning of 2011 to May of the same year, amounted to €837.6 million, which was an increase of 19% in comparison with the same period last year. The total value of exported goods was €180.5 million, which was 53.2 percent more than it had been in 2010, while the value of imported goods was €657.1 million, an increase of 12.2 % compared with the first five months of last year.
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The export-import ratio amounted to 27.5% and was bigger than the ratio that had been recorded during the same period last year, which amounted to 20.1 %.
Terna Publishes the Details of the Contract on Underwater Cable The Italian company, Terna, gave its approval to publish the details of a contract concerning the construction project of an underwater cable from Montenegro to Italy. Terna expressed that it was ready to give its approval to publish parts of the contract, emphasizing that the legislation and practices required by the European Union ensured, in the main, the confidentiality of these types of contracts and their content. The contract regarding the construction of the underwater cable from Tivat to Pescara was signed in November 2010 and is worth around €720 million.
Employers are worried about the state in Montenegrin economy
It was assessed by the Employers Federation of Montenegro that the situation is concerning in economy. The business environment is bad and planned investments should be realized in due course. The unemployment rate in Montenegro is 11 percent, and employers were very active in 2011 and employed 2.5 percent more workers than last year. The odd thing is that there are 30.000 unemployed in the records of Montenegrin Employment Office, while there are 12.000 foreigners who are working in the country.
World Bank Agrees on €59.1 million for 20 year Loan to Montenegro The World Bank agreed a €59.1 million loan to Montenegro for budget support and banking system reform. The World Bank’s board of directors is expected to give final approval for the loan at the end of August or at the beginning of September.
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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Coming Up…
THE XIX TRADITIONAL ECONOMIC FORUM IN MILOČER September 12-14, 2011 in Pržno, Montenegro
Since 1993, the Miločer Economic Forum has been continuously held under the organization of the Montenegrin Economist Association in cooperation with the other associations. The XIX Miločer Economic Forum will be organized in cooperation with “Socius“ from Ljubljana. The assembly will be held on September 12, 13 and 14, 2011 in hotel “Maestral”, in Pržno. The main topics will be the Balkans and the EU. The participants are well known academics, professors, experts, businessmen, politicians as well as talented students and high school students coming from Montenegro, the region, the EU, the USA and the Middle East.
CEED Consulting
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For more information please visit: www.secg.co.me
THE 12TH SMALL AND MEDIUM ENTERPRISES FAIR
October 26-28, 2011 at the Adriatic Fair in Budva
The Fair of small and medium enterprises represents the platform for promotion and encouragement of the small and medium-sized enterprises in order to help further development of the general entrepreneurial culture in Montenegro and in the region. For more information, please visit: www.adriafair.co.me
SEMINARS FOR ENTREPRENEURS IN PODGORICA In the cooperation with International Finance Corporation (IFC), Center for Entrepreneurship and Economic Development (CEED) from Podgorica have organized a series of practical seminars consisting of three modules: Risk Management, Cost reduction and Cash Flow Management. The first two modules were successfully organized in May and July, while the last one will be organized in September 2011. The main objective is to assist small and medium-sized enterprises in Montenegro that are facing with key issues during the current crisis by providing them with the practical information, strategies and tools. For more information please visit: www.visit-ceed.org.me
After 15 years of experience, today CEED Consulting is the leading business consulting company in Montenegro which helps clients improve their business operations, further develop and perfect both their service and product and meet the need of their customers. We integrate our business development and project management services, providing solutions for setting up and growing your business activities in Montenegro. Focusing on customer care, our team emphasizes quality of service, which we are continually striving to improve. Loyalty and dedication transpire through our unique and professional approach to advising our clients. Implementing international standards of business practice, CEED Consulting relies on its expert knowledge of the local market to provide tailored solutions based on accurate and timely information. We are professional, flexible and different! And always dedicated to you!
Editor in chief Ivana Božanović info@ceed-consulting.com MBO Team Dragana Radević Mihailo Zečević Darko Konjević Vesna Bojanović Jelena Međedović Jasna Žarković Biljana Sekulić Ana Rašović ASSOCIATE Charlotte Rimmer, Editor
Front page picture: Bokokotorski zaliv (Boka Bay) Montenegro Author of the picture: Photography provided by CSTI for project “Photography Adventure“ Printing: Montcarton, Podgorica
CEED Consulting Team
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Affiliate of US Chamber of Commerce www.cipe.org
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