Press release following Cabinet meeting

As part of its program activates, at a Cabinet meeting chaired by Prime Minister Milo Djukanovic on Thursday, the Government of Montenegro adopted the Analysis of the Implementation of the Macroeconomic Policy of Montenegro for the first quarter of 2010. Having activated a system of anti-crisis measures of fiscal, monetary and social policy, aimed at supporting businesses, restructuring major industrial systems and ensuring social sustainability of the Montenegrin society, the Government has created conditions for mitigating and controlling the negative effects of the crisis. The data on economic developments available at the beginning of the year suggest that the measures introduced have mitigated the effects of the economic and financial crisis on the national economy, stabilizing economic trends and creating conditions for economic recovery and growth.

An analysis has confirmed that focusing fiscal policy on support to entrepreneurship in the sector of small and medium-sized businesses and providing special business incentives for profitable projects through the banking system is already producing positive results, with the liquidity of the system being a priority task in the process of economic recovery. The Investment and Development Fund is currently preparing loan guarantee arrangements aimed at supporting small and medium-sized businesses in 2010, which is intended to give a renewed impetus to economic regeneration of the sector of small and medium-sized companies and boost regional development. In addition, evident progress has also been made in carrying out the program of restructuring major industrial systems, which is meant to achieve stabilization and long term sustainability of their operation.

The Government adopted the Report on Amendments to the Draft Guarantee Agreement with Credit Suisse Bank for the €26.3 million loan granted to the Ironworks of Niksic. The amendment has created conditions for the commencement of the loan and full control of the expenditure of the funds, which are earmarked exclusively for the installation of new equipment and company restructuring.

As part of the healthcare reform process, the Government adopted the Healthcare Development Master Plan for 2010-2013. Being a core healthcare policy instrument, the Master Plan provides for efficient, rational and sustainable development of the healthcare protection system, creating conditions for the EU integration of the healthcare industry. After the completion of the primary-level healthcare reform, the Plan lays down the activities aimed at reforming the system at the secondary and tertiary level, in order to fully integrate the core values on which socially-oriented societies are based.

In addition, the Government has considered a number of other issues within its purview.