World Bank to recommend how to advance Montenegro competitiveness

Podgorica, Montenegro (16 May 2012) – Finance Minister Milorad Katnić met with the delegation of the World Bank, headed by Jane Armitage, Director and Regional Coordinator for South East Europe, in Podgorica earlier today.

Due to negative and unpredictable developments in Europe, the both sides confirmed the necessity to continue the prudent fiscal policy and maintain the same course of macroeconomic policy. They also highlighted the need to further advance infrastructure and investment environment in order to achieve a dynamic economic growth.

With the aim of providing support to the improvement of competitiveness in Montenegro, the World Bank is preparing a study which will define Montenegro’s potentials and limitations for further development and will include a research study on investment climate. The preparation of the report is in its final stage and will be presented in mid June, Director for South East Europe remarked.

The meeting also discussed the activities regarding the preparation of a loan guarantee based on development policies (Policy Based Guarantees), which will enable Montenegro to obtain much more favorable loan rates.

Minister Katnić said that, in times of great instability and isolation of international financial markets, such support is of great importance for Montenegro, as it would help improve its public debt structures.

“Having confirmed that we had met the requirements to run for this arrangement, you acknowledged our efforts to establish a sustainable system of public finances”, Minister Katnić underlined.

The World Bank representatives voiced the institution’s readiness to continue to assist Montenegro’s further activities aimed at maintaining fiscal and financial stability.