Presentation of the Deputy Prime Minister and Minister of Finance, Mr. Igor Lukšić at the meeting of Croatian Business Club in Montenegro.

The Government has the right to apply pressure on banks to withdraw money which based on state guarantee was provided from abroad. We dont want to suggest to the banks where to invest the money i.e. in which company. This is their business and depends on the business plan analysis. If the economic crises deepens, than we cannot talk about clients solvency. In case of such situation, everyone becomes the part in the chain of problems. Therefore, it is necessary to understand that the banks must assume the role, conditionally speaking companies restructuring. In the absence of this kind of assistance, the overall process will fail. The issue of providing the fresh money to Montenegrin banking system will be resolved in forthcoming days, providing effects in forthcoming period, through the support to economy small and medium sized enterprises. This is only one half of job done, if this money is not withdrawn or invested. In that case, this wouldnt be a good solution for preventing the crises consequences. The money that we provided provides for extremely favorable conditions. This is the best possible source of funding, after permanent capital better than deposits in previous period. This money is repaid within seven, twelve, fifteen years in comparison with term deposits of a year or two. Montenegro must provide for stability in public finance. On the basis of budget rebalance, adopted by the Government of Montenegro, we decreased linear fund of earnings for all budgetary users, which does not imply the decrease in earnings. We prevented additional expansion of administration, due to the absence of the space for maneuver. We prolonged cost - saving measures and offered alternative scenarios. By rebalance, we increased the item related to electricity prices subsidies for citizens and economy. Aluminum Plant and Steel Factory, regardless their privatization, have not been fully privatized. The economic crises is a momentum for implementation of reforms. The economic system should be additionally liberalized, to strengthen the role of the regulator in economy.