DPM Gjeloshaj meets with Governor of Central Bank of Montenegro and Head of EBRD Office

Deputy Prime Minister for Economic Policy and Minister of Economic Development of Montenegro Nik Gjeloshaj met with Governor of the Central Bank of Montenegro Irena Radović, Head of the European Bank for Reconstruction and Development (EBRD) Office in Montenegro Remon Zakaria, and Managing Director of Crimson Capital Michael Gold.

The meeting focused on the establishment of the Credit Guarantee Fund (CGF) in Montenegro, the regulatory framework, and the role of the Central Bank in this process.

The meeting participants agreed that the establishment of the Credit Guarantee Fund is a significant step for the Montenegrin economy, noting that both domestic and international institutions involved in the establishment of the Fund are highly committed to the project.

Governor Radović emphasised that the Central Bank is prepared to fully contribute within its competencies, as the Credit Guarantee Fund can significantly support the Montenegrin economy, particularly its more vulnerable segments.

Establishing the Credit Guarantee Fund is extremely important for the financial system and the Montenegrin economy, as it will provide additional support for financing entrepreneurs, micro, small, and medium-sized enterprises (MSMEs), start-ups, women, and youth in business, thereby fostering further development and prosperity of the Montenegrin economy, said Governor Radović.

Deputy Prime Minister Gjeloshaj expressed satisfaction with the meeting, highlighting that the Government of Montenegro, along with other relevant institutions, will work to create the best possible regulatory framework, aligned with the highest standards and best practices.

The support package that will be offered through the Credit Guarantee Fund and the Development Bank to legal entities in Montenegro, especially to micro, small, and medium-sized enterprises, will provide additional impetus for our economy, said Gjeloshaj.

The Head of the EBRD Office emphasised that the goal of establishing the CGF is to provide support to businesses and entrepreneurs with limited or difficult access to financing from commercial banks.

The Credit Guarantee Fund will target potential clients who are not sufficiently covered by financing, thereby activating potential in the banking sector, especially towards micro, small, and medium-sized enterprises, said Zakaria.

Michael Gold, Managing Director of Crimson Capital, the international consulting firm engaged in the establishment of the Credit Guarantee Fund in Montenegro, stated that the aim is to create an independent, long-term sustainable guarantee fund in Montenegro, based on the best international practices.

The Credit Guarantee Fund is an institution that provides guarantees for loans approved by banks to micro, small, and medium-sized enterprises, with the aim of facilitating access to financing for MSMEs with quality projects and programmes but lacking collateral for traditional financing. One of the primary functions of the CGF includes increasing the availability of credit, reducing risk for financial institutions, and supporting economic development.