Montenegro to boost small and medium-sized business with favourable loans worth EUR 100m

Podgorica, Montenegro (10 October 2012) – Finance Minister Milorad Katnić and Dominique Courbin, Head of Division for Operations in the Western Balkans at the European Investment Bank (EIB), signed a loan agreement worth EUR 50 million earlier today. The loan is aimed at supporting small and medium-sized enterprises, infrastructure and environment projects in Montenegro.

By signing the loan agreement, the Government of Montenegro has committed to invest additional EUR 50 million in these projects over the four-year period through the Investment and Development Fund of Montenegro. This means that over the course of four years at least EUR 100 million will be made available for small and medium-sized businesses in Montenegro under very favourable terms.

The EIB loan is to be realised through the Investment and Development Fund, and was given under very favourable terms, with an eight-year maturity, a two-year grace period and the annual interest rate between 2.5 and 3.5%.

The loan agreement provides for very favourable interest rates and terms to entrepreneurs and business people, which is crucial in the times of economic crises when access to affordable loans is limited, the Government’s Spokeswoman Anđela Čelebić said.

This financial arrangement highlights the Government’s understanding of the important role of micro, small and medium-sized enterprises, in particular in the fields of agriculture, tourism, and energy supply, as the core of the country’s long term sustainable economic development, Ms Čelebić emphasised.

By signing the agreement, the Government shows that it adheres to the principles of sustainable business financing and economic soundness, which will have a long-term impact on reducing unemployment and creating a competitive and dynamic business environment.

Montenegrin officials and representatives of the European Investment Bank (EIB) signed three additional financial arrangements today, including the loan agreement on flood damage prevention, the agreement for water supply system reconstruction for the Royal Capital of Cetinje and the agreement for waste waters treatment in the municipality of Pljevlja.