Speech by Deputy Prime Minister and Minister of Finance Igor Luksic, PhD, on anual EBRD meeting

Distinguished colleagues Governors,

The event of the economic and financial crisis has imposed an obligation to reconsider and adjust our policies to extreme circumstances and global economy trends.

In case of Montenegro, and I believe that was the case for other countries as well, this was a challenge, but also some kind of Government’s maturity and accountability test to verify long lastingness and sustainability of economic policies. Many have entered the crises, but only those that have utilized the crisis as a lesson and indicator for benchmarks for future development policies in the best possible way will exit the crisis.

In spite of the disruption in the global environment that had an adverse effect to our economy as well, for Montenegro the crisis was an opportunity for started projects and set policies to be placed within a long-term development concept.

Our priority remains accomplishment of the European Union Lisbon Strategy targets for economic and structural reforms, as our efforts show results. We also believe that the most recent report of the IMF executive directors has also provided a confirmation of our efforts aimed at macro-economic stabilisation and financial standing.

This is only a confirmation of our good economic course and there is no time for relaxation whatsoever. World, and thereby Montenegrin economy is looking towards numerous challenges and implementation of important projects, primarily restarting those segments of the economy slowed down or stopped by the crisis. We believe that structural reforms in many areas, is the proper answer to get addressed if countries of Europe want to gain competitiveness in today’s world.

One of the crucial challenges refers to strengthening of the credit activity of our banks, enforcing links between real and financial sector, because it seems that relations where never as disrupted in the recent economic history as presently are. And these are exactly the reasons why the role of EBRD could have a great significance in this segment, in particular in case of small countries like Montenegro is.

We would like to pioneer the road for our economic entities towards international financial institutions, by strengthening direct links and cooperation with multilateral organisations and by doing so to strengthen capacities of our economy.

Anyhow, the role of the State is to create an environment for doing business, open opportunities for new financial links in order to have fewer cases of state interventionism in years following the crisis. Only free and open economies can contribute to the growth of national product and improvement of standard of living of citizens.

Our cooperation with EBRD, has initiated, among other things, numerous development and infrastructural projects in the fields of environmental protection, transport, infrastructural projects, water supply, and other. This was also a significant support to our country on its path of strengthening capacities and existing transitions, and creating prerequisites for the development of tourism. Therefore we support all the intentions to further capitalise the EBRD as it becomes more and more an important partner.

Presently, all our forces are directed towards the restructuring of our economy, fiscal adjustments, creating environment for ease of doing business, new investments, start-ups of new entrepreneurial and business ideas, development of small and medium-sized enterprises, implementation of large capital investments, and other.

Additionally, an important priority of the Government presently is to continue with reforms in the area of state-level and local administration. To that end, the Government has already initiated activities; however, the role of EBRD will be also important in securing financial support for these projects.

Without fail, putting in motion regional initiatives in the coming period will have an importance for the entire Balkan and South-East Europe region. This is where I see the room for strengthening links, better cooperation in the area of transport, primarily of the railway infrastructure, tourism and economic exchanged. That is where the role of EBRD can be to provide additional impetus for carrying out of important regional policies, by starting and providing support to regional projects.

In the months to come we expect to continue cooperation with EBRD and to finalise agreements concerning the implementation of important infrastructural projects for Montenegro, which will be a significant driver for the overall economy.


Igor Lukšić PhD
Deputy Prime Minister and Minister of Finance