Press release from the 46th Cabinet session

At today's 46th session, chaired by Prime Minister Milojko Spajić, the Montenegrin Cabinet approved the proposal for a direct long-term loan to national energy company Elektroprivreda Crne Gore AD Nikšić. Elektroprivreda submitted a request to the Investment and Development Fund for a direct loan of €10 million to finance the "Solar 5000+ 70MW" project. This project involves financing, procuring, and commissioning photovoltaic systems for households and businesses across Montenegro. In response, the Investment and Development Fund decided to approve the direct long-term loan to Elektroprivreda Crne Gore AD Nikšić, with a repayment period of 96 months (excluding a 24-month grace period) and an annual interest rate of 4.00%. The "Solar 5000+" project has already begun, with an installed capacity of 11.268 kW, and over 16,000 households and businesses have expressed interest. The project's total value could reach up to €82 million, with a total installed capacity of around 70 MW. Given the importance of maintaining the continuity of this project, which aims to shift towards renewable energy sources and reduce electricity costs for end users, the Credit Guarantee Board of the Investment and Development Fund of Montenegro has issued a positive opinion on financing this project.

The Cabinet also adopted the decision to develop a Local Location Study "Donji Štoj," Municipality of Ulcinj. The study covers an area of 362 hectares and aims to create spatial planning conditions for tourism development, legalization of existing illegal structures, curbing uncontrolled settlement expansion, forming a settlement identity, and improving social and communal infrastructure.

The Cabinet has approved the disbursement of recognized but unpaid claims for 88 retirees of the Podgorica Aluminum Plant (KAP). The Ministry of Labour, Employment, and Social Dialogue, considering the complete chronology of the case and the submitted documentation, determined that the unpaid claims amount to €1,151,463.29. Since the bankruptcy estate currently lacks sufficient funds for distribution to creditors, the Ministry of Finance was tasked with reallocating funds from the Current Budget Reserve to fulfill this obligation.

The Cabinet also adopted the Information on the Protection of Property and Legal Interests of Montenegro for the reporting period from 1 April 2024 to 30 June 2024. The report highlighted that the outflow of funds from the budget due to enforced collections in the first half of this year has already reached the total outflow for the entire previous year, amounting to approximately €11.561 million. The majority of this amount is due to legal fees, including lawyer fees, enforcement fees, interest, and commissions, totaling between €1.8 million and €3.6 million. The report also noted the continued influx of lawsuits from public servants against the state, particularly regarding compensation claims related to labour rights, with the Ministry of the Interior and the Ministry of Defence being the most frequently involved.

The Cabinet adopted a decision on temporary measures to cap the prices of essential products and a list of such products. It was concluded that the measures taken thus far to limit the maximum margins on basic foodstuffs have positively impacted reducing the prices of essential goods and significantly protected the living standards of citizens, especially the most vulnerable groups. Therefore, the Cabinet decided to continue capping maximum margins at 5% in wholesale and 7% in retail for products such as wheat flour (types 400 and 500), sugar, sunflower oil, and table salt. Additionally, to stabilize prices and protect the living standards of the most vulnerable populations, the Government will further limit margins to a maximum of 10% in wholesale and retail on all items from the product groups listed in Annex 2 of this decision and a maximum of 10% in wholesale and 15% in retail on all items from the product groups listed in Annex 3 of the decision. The decision emphasises domestic products, which strengthens the national economy, increases the competitiveness of domestic industries, and makes local products more accessible and affordable. The implementation of this decision will not jeopardize the operations of business entities but will significantly protect citizens' living standards. It was emphasised that this is a comprehensive action that covers all items within a product category, affecting hundreds of product categories in every major retail chain. The proposed decision will not apply to retailers whose total retail space in Montenegro does not exceed 600 m².

For full press release in Montenegrin please click here.