Montenegro to take EUR 50 million from European Investment Bank to support small and medium size business

Podgorica, Montenegro (13 September 2012) – At today’s session, the Cabinet gave its approval to the Investment and Development Fund of Montenegro to enter into a loan agreement with the European Investment Bank (EIB) worth EUR 50 million. The loan is aimed at supporting small and medium size enterprises and development of infrastructural projects in Montenegro, Finance Minister Milorad Katnić said following the Cabinet meeting.

The arrangement envisages eight-year loan repayment period, with two-year grace period, and the interest rate of 2.5 – 3.5%, the Finance Minister said.

The Investment and Development Fund is to invest additional EUR 50 million, and the entire project, worth EUR 100 million, is supposed to be realised in four-year period as a boost for small and medium size business in Montenegro. It is expected to contribute to the creation of new jobs and economic development, in particular in the areas of agriculture, energy and tourism, Minister Katnić concluded.