Press release from the 30th Cabinet session

The Montenegrin Cabinet held its 30th session, chaired by Prime Minister Milojko Spajić. The Cabinet adopted the Action Plan for 2024 for the implementation of the Strategy for the Improvement of Occupational Safety and Health in Montenegro 2022-2027, along with the Report on the Implementation of the Action Plan for the Improvement of Occupational Safety and Health in Montenegro for 2023. As emphasised during the discussion, the Action Plan is the primary instrument for enhancing the quality of occupational safety and health in Montenegro. It outlines measures and activities aimed at achieving the goals defined by the Strategy for the Improvement of Occupational Safety and Health in Montenegro, for a period of one year, presenting concrete operational goals and challenges. The Action Plan defines 25 activities, whose implementation is expected to contribute to improvements in the field of occupational safety and health, reflected in the reduction of workplace injuries, as well as a better assessment of the degree of social development with a social component background. Regarding the implementation level of the 2023 Action Plan, it was noted that out of a total of 21 planned activities, 16 or 76% were completed, one activity or 5% was partially completed, while four activities or 19% were not completed.

The Cabinet adopted the Information on the initial states of deposits, outstanding liabilities, and unexpired budgets of Montenegro as of 1 January 2023. The Information noted that as of 1 January 2023, the initial state of budget deposits amounted to €46,320,320.88, the state of outstanding liabilities was €8,662,542.85, and the initial state of unexpired budget liabilities was €93,921,738.09. Based on the recorded initial states of deposits, outstanding liabilities, and unexpired budget liabilities, the Government tasked the Ministry of Finance with preparing the Draft Law on the Final Account of the Budget of Montenegro for 2023.

The Cabinet adopted the Action Plan for Improving the Effectiveness of the Anti-Money Laundering and Counter-Terrorism Financing System and Technical Compliance for the period 2024-2025. The Action Plan was developed in accordance with the recommendations provided by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) of the Council of Europe, aiming to address the deficiencies identified in the Fifth Round Evaluation of Montenegro’s Anti-Money Laundering and Counter-Terrorism Financing system and to achieve greater compliance with international standards. The first part of the Action Plan includes measures to improve technical compliance, specifically the alignment of the national legislative framework with the 40 Recommendations of the Financial Action Task Force (FATF). The second part of the Action Plan consists of measures to enhance the system's effectiveness based on 11 immediate outcomes outlined in the FATF Methodology. The structure of the Action Plan is based on one strategic goal and includes 40 operational goals for technical compliance and seven for improving effectiveness. The Action Plan details relevant activities, outcome indicators, responsible institutions, timelines, and financial structures for the implementation of activities. The total amount of planned funds for the implementation of activities outlined in this Action Plan is €3,248,000, of which €1,038,000 will be provided from the budget, while €2,210,000 is planned from donations.

The Cabinet adopted the Report on the Work of the Commission for Monitoring the Actions of Competent Authorities in Investigations of Threats and Violence against Journalists, Murders of Journalists, and Attacks on Media Property for the period from 30 November 2023 to 10 April 2024. This seventh Report includes: an updated report on the case of the murder of Duško Jovanović, the chief editor of the daily newspaper Dan; a report on the attack on Radio and Television of Montenegro journalist Slobodan Doknić on 20 January 2022; a report on the attack on journalist Alma Ljuca on 12 June 2015; an updated report on threats against journalist Ana Popović on 25 January 2022; and an updated report on the case of general endangerment committed against the editorial office of Vijesti on 26 December 2013. Additionally, the report contains the Commission's statements regarding the comments/reports of the state prosecutor's offices in relation to the recommendations contained in the Commission's III, IV, V, and VI reports, and an analysis of the new guidance issued by the Supreme State Prosecutor to all state prosecutor's offices for handling cases of threats and violence against journalists, murders of journalists, and attacks on media property.

The Cabinet adopted the Information on the results of negotiations with the European Investment Bank for the conclusion of a Loan Agreement for the Montenegrin Railway Improvement Project between the European Investment Bank and Montenegro, with a proposal to forward the loan funds to Railway Infrastructure (Željeznička infrastruktura AD Podgorica) and Railway Asset Maintenance (Održavanje željezničkih sredstava AD Podgorica), including the contract drafts. According to the 2024 State Budget Law of Montenegro, the State may incur debt to finance projects through loan arrangements, including those with the European Investment Bank (EIB) for the needs of Montenegrin Railway Infrastructure and Railway Vehicle Maintenance, for financing the general track overhaul project, the rehabilitation of 13 steel bridges and tunnels, as well as for the modernization of depots and workshops, in the amount of up to €40 million. Given that the investment grant provides funds for financing 50% of the project value, the Ministry of Finance, in accordance with the Government's conclusion of 25 April, concluded negotiations with the European Investment Bank and finalized the text of the Loan Agreement in the amount of €40 million. The total investment is estimated at around €80 million, of which €35.5 million is allocated as a grant from available EU funds within the Western Balkans Investment Framework (WBIF), and €4.5 million will be secured from own funds.

The Cabinet adopted the Information on the initial bases for negotiations with the French Development Agency (AFD) regarding the Development Policy Loan. According to the 2024 Budget Law, the State may incur debt up to €1.150 million, and these funds can be used to finance the missing funds primarily related to debt repayment in 2024 and financing the capital budget and creating a fiscal reserve. Considering that the issuance of bonds on the international capital market has so far amounted to $750 million, or €687.76 million after the hedging transaction, the remaining amount that can be secured through borrowing this year is approximately €463 million. Accordingly, discussions have been held with the World Bank to secure a Development Policy Loan to provide additional funds for budget financing and creating a fiscal reserve. The goal of these loans is to assist countries in implementing structural changes that will foster economic growth and reduce poverty. In this regard, the Government has tasked the Ministry of Finance with continuing negotiations with the French Development Agency regarding this arrangement, to specify further steps for its implementation.

The Cabinet adopted the Information on unspent funds in the Capital Budget of the Directorate for Capital Projects for 2024, with a proposal to reallocate these funds to other capital projects. Accordingly, the Ministry of Finance has been tasked with reallocating the unspent funds, totaling €2,090,000, as follows:

• Improvement of city, local, and unclassified roads - €750,000
• Procurement of equipment to enhance the work of public services in the Old Royal Capital - €640,000
• Construction, reconstruction, adaptation of city roads - €100,000
• Improvement of city, local, and unclassified roads - €200,000
• Construction, reconstruction, adaptation of city roads - €400,000

The Cabinet adopted the Information on the Decision of the Minister of Justice not to attend the sessions of the Judicial Council and vote on matters within the competence of the Judicial Council until amendments to the Constitution of Montenegro are made to exclude the Minister of Justice from membership in the Judicial Council. The Information emphasises that, to meet the interim benchmarks of Chapter 23 and following the recommendation of the Venice Commission, the Minister of Justice decided not to attend the sessions of the Judicial Council and vote on matters within the Council’s competence until constitutional amendments are made to exclude the Minister of Justice from the Council’s membership. It was noted that the Minister of Justice has not attended the sessions of the Judicial Council since 9 February 2024 (since when nine sessions have been held).

For full press release in Montenegrin, please click here.