Brussels: Adoption of European standards to result in stronger economic growth, better quality of life

Brussels, Belgium (25 June 2015) – Montenegro is making good progress in fulfilling obligations arising from the negotiation process in the fields of economy and finance, and it can expect the European Commission’s full support in that regard, European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici noted at today's meeting with Montenegro’s Finance Minister Radoje Žugić in Brussels.

Minister Žugić talked talked in Brussels to Director-General for Economic and Financial Affairs Mark Buti and Deputy Director-General for Budget Manfred Kraff.

At his meetings with the EU officials, Minister Žugić welcomed the European Commission's  new approach aimed at strengthening economic governance in the enlargement countries, through the development of national programmes of economic reforms. In that context, he thanked the European Commission for the recommendations and suggestions in this area, describing them as very important for developing future measures and policies.

Presenting Montenegro's medium-term macroeconomic and fiscal policy, the Finance Minister said that Montenegro is expected to experience stronger economic recovery in the period 2015-2018 due to increased investment activity and further involvement of local potential in several priority sectors, with an average annual economic growth rate of 3.8%.

Following his meetings in Brussels, Minister Žugić signed a loan agreement for projects of water supply and waste water treatment for the country's municipalities worth EUR 10 million. This is a very favourable credit arrangement with 25-year repayment period, 4-year grace period and average interest rate of 2.2%. The projects' implementation will create conditions for dynamic economic development, improve public services in the field of ecology, reduce public health risks and increase attractiveness of Montenegro as a tourist destination. It was emphasised that the loan arrangement does not bring the debt burden, as it represents an investment in the share capital and generates income that ensures regular repayment of the loan.