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Press release on Cabinet's decisions made without holding session on 16 July

Published on: Jul 17, 2020 8:58 PM Author: PR Service
Podgorica, Montenegro (17 July 2020) -- The Montenegrin Cabinet, without holding a session and based on the obtained consent of the majority of Cabinet members, adopted on Thursday, 16 July 2020, the Draft Law amending the Law on Pension and Disability Insurance.

The Draft Law on Standardization was adopted, in order to further harmonise national legislation with the legislation of the European Union within the Chapter 1 - Freedom of movement of goods. The law regulates the organization and activity of the national body for standardization of Montenegro, adoption, publication, withdrawal and application of Montenegrin standards and related documents and other issues of importance for standardization. The proposal defines that standardization activities in Montenegro are performed by the Institute for Standardization, as an independent and non-profit national body for standardization, with the status of a legal entity that performs activities of public interest.

The Cabinet passed the Information on the conclusion of the Financing Agreement between Montenegro and the European Investment Bank (EIB), for the implementation of the project "Main Road Reconstruction Programme," Tranche B and accepted the text of the Financing Agreement. The Information reminds that in July 2018, the Board of Directors of the EIB approved a loan to Montenegro for financing this project in the total amount of EUR 80 million. This amount is divided into two credit tranches, within which the Financing Agreement in the amount of EUR 40 million was concluded on 28 November 2018. The remaining EUR 40million in loans from the arrangement are the subject of a financing agreement provided for in this year's Law on Budget. The objectives of the Project are to improve selected sections of road, in order to provide adequate capacity, reduce congestion and increase service levels, as well as to renovate old roads to a state of higher carrying capacity that can be maintained by normal routine maintenance operations. The total estimated cost of the project is EUR 185 million, and the funds for its implementation will be mostly provided from the funds of international financial institutions. 

The Cabinet passed the Information on the need to provide a loan for the implementation of project activities within the Interreg IPA CBC programme Italy - Albania – Montenegro. Within the Interreg IPA CBC program Italy - Albania - Montenegro, the Ministry of Culture, as a leading partner, is implementing the project "Cross-border exchange with the aim of developing culture and creative industries - 3C". It is a project that will result in the reconstruction of the former prison in the Old Town of Kotor, with the aim of establishing a creative hub. The total value of the approved project is EUR 4.281, 675.26, of which 85 percent of eligible costs are financed by the European Union, and 15 percent by each project partner, in proportion to its budget. The approved budget of the Ministry of Culture, as the main partner, amounts to EUR 1,271,336.81, and the national co-financing to EUR 190,700.53. On that occasion, the Ministry of Finance is in charge of allocating EUR 133,820.24 from the Current Budget Reserve, in order to settle obligations to the contractor. These funds will be reimbursed in full by the European Commission and the Managing Authority of the Italy-Albania-Montenegro cross-border cooperation program.

The Cabinet passed the Information on concluding a credit arrangement with the European Commission within the Macro-Financial Assistance Program to the countries from the enlargement process and neighboring countries in the context of the COVID-19 pandemic crisis. Due to the coronavirus epidemic in Montenegro, there was a decline in economic activity, which resulted in a decline in budget revenues and an unplanned increase in budget expenditures. As part of Montenegro's rapid response, in order to provide the missing budget funds to finance the budget for 2020 and possibly create a fiscal reserve for 2021, immediately after the declaration of the pandemic, the Ministry of Finance contacted the International Monetary Fund (IMF), the European Commission (EC) and the World Bank (WB), as well as with domestic and foreign banks in order to provide funding. In that sense, the credit arrangement, worth EUR 74.2 million, was concluded with the IMF on 23 June 2020. When it comes to the loan arrangement with the World Bank in the amount of EUR 25 million, the negotiations have been completed, and the final decision of the Board of Directors of the International Bank for Reconstruction and Development (IBRD) is expected in mid-July 2020.

The Cabinet adopted the Annual Report on the implementation of the Action Plan for the establishment of the European Union's own funds system in Montenegro for 2019. The action plan envisages activities concerning the study of regulations and requirements of the EU, relating to the accounting system of traditional own funds based on A and B accounts, in accordance with the experience of EU members, preparatory actions related to amendments to the Law on Customs or other regulations that would regulate governing enforcement on movable and immovable property and the harmonization of the Law on Value Added Tax with the acquis communautaire. 

For full press release in Montenegrin, please click here

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO 

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