Adoption of the Restructuring Plan is the only way to save the Institute

Regarding the claims made by the minority shareholder of the "Dr. Simo Milošević" Institute, Mr. Žarko Rakčević, co-owner of HTP Vile Oliva, the following is stated:

It is malicious to imply that the 44th Government is selling the "Dr. Simo Milošević" Institute, given that no previous government, until this one, has committed to saving the Institute. The following facts attest to this:

• The 44th Government increased the price for Health Insurance Fund patients and allocated an additional €4.5 million for the Institute.
• The Government helped the employees of the Institute through urgent aid via the Union during one of the most difficult moments in the institution’s history.
• This is the first and only government to undertake the strategic and systemic rehabilitation of the Institute through the Restructuring Plan, which, according to the Law on State Aid Control, is the only way to save the Institute from bankruptcy.

Previous governments did not invest a single euro in the Institute, leaving debts exceeding €20 million, neglected facilities, and outdated equipment. This neglect has constantly placed the Institute on the verge of bankruptcy or privatization.

To save the "Dr. Simo Milošević" Institute from bankruptcy, the only legally based option is for the Institute to secure its 40% contribution to the Restructuring Plan (approximately €42.7 million) on market terms, alongside the 60% contribution from the Government, without any further state intervention.

As outlined in the Restructuring Plan prepared by the University of Montenegro’s Project Team, the Institute can currently secure funds only through the sale of its properties, as they represent its only assets. It is important to note that these properties have not been fully utilized for years.

As Prime Minister Spajić stated at the press conference when presenting the document, the Government did not prepare the Restructuring Plan. Instead, it is the result of four months of work by the Project Team of the University of Montenegro, which included professors from the Faculty of Economics and the Faculty of Civil Engineering. Therefore, any claims that the Government is proposing the sale of the Institute are unfounded.

It is also important to recall that previous governments conducted five tender procedures, the last of which was in 2018, when it was proposed to sell the entire state share package of the Institute for only €35 million. We understand Mr. Rakčević’s dissatisfaction with this failed privatization, but this is not a matter that can be attributed to this Government.

This Government, unlike all previous ones, is ready to invest over €60 million into the Institute, with funds already planned in the 2025 Budget amounting to €32 million.

Minority shareholders now face two options: investing alongside the state or selling their shares to the state. Any other option, as the Restructuring Plan shows, leads the Institute into bankruptcy, where the only way to settle its liabilities would be through the sale of assets, given its debts of €25 million.

We emphasize that the sale of part of the Institute’s property, which is being challenged by the minority shareholder with significant participation, will not be an option unless they invest together with the state and the Institute.

On the other hand, capitalization without a Restructuring Plan as a basis for all state investments, as proposed by the minority shareholder, would constitute illegal state aid.

Therefore, we call on the minority shareholders, concerned about the sale of part of the Institute’s assets, to invest and contribute, together with the state, to saving this unique institution for physical medicine, rehabilitation, and rheumatology.

Furthermore, the justification and compliance of the Restructuring Plan with the Law on State Aid Control, or any potential non-compliance, will be assessed by the only relevant institution in Montenegro – the Agency for Protection of Competition.