Press release from the 61st Cabinet session

The Montenegrin Cabinet held its 61st session, chaired by Deputy Prime Minister Aleksa Bečić.

The Cabinet adopted the Draft Law on Amendments to the Law on Payment Transactions. It was highlighted during discussions that this legislation fulfills one of the criteria for the provisional closure of Chapter 4 – Free Movement of Capital. The proposed changes establish the foundation for further development and improvement of payment services in Montenegro while ensuring full alignment with European regulations. Additionally, the amendments provide for precise definitions of rules for operating within SEPA payment schemes, ensuring continuous compliance for domestic service providers relative to their EU counterparts. Enhanced transparency in the licensing of payment service providers is expected to foster market competition by attracting new entrants.

The Draft Law on Amendments to the Law on Pension and Disability Insurance was also adopted. These changes aim to improve the socio-economic status of proportional pension beneficiaries in line with international agreements on social security. The amendments propose supplementary payments to ensure that proportional pensions are not below the minimum pension level (450 EUR). Additionally, the draft includes a reduction in contributions for extended insurance, benefiting contributors under Article 66 of the Law.

The Cabinet approved the request by the public company Hotel Group “Budvanska Rivijera” to secure a 10,000,000 EUR loan from NLB Bank Podgorica. The loan, with a fixed interest rate of 3.90% and a 120-month repayment period (including a 12-month grace period), will finance the renovation of 334 rooms at the Slovenska Plaža tourist complex. The company will co-finance the project with an additional 3,789,679 EUR from its own resources. A financial analysis confirmed the company’s solvency and profitability, ensuring the loan will not jeopardize liquidity. The upgrades will elevate the complex’s classification from 3 to 4 stars, significantly enhancing the quality and competitiveness of its accommodation offerings.

The Cabinet adopted the Decree on Amendments to the Decree on the Salaries of Military Personnel in the Armed Forces of Montenegro. This decree increases the coefficients for calculating the base salary for professional military personnel. Higher increases are allocated to deficit categories, including non-commissioned officers and contracted soldiers. Effective 1 January 2025, this measure aims to enhance the attractiveness of military service, retain current personnel, and recruit new members, ensuring optimal staffing levels for the Armed Forces.

To meet the final benchmarks for Chapter 21 – Trans-European Networks, the Cabinet adopted an updated Unified List of Priority Infrastructure Projects in the Energy Sector, valued at approximately 1.38 billion EUR. This update aligns with the Western Balkans Investment Framework (WBIF) methodology and EU Regulation 1316/2013 on the Connecting Europe Facility. The list will guide European Commission decisions on financing priority projects for Montenegro during 2024–2027.

The Cabinet approved the proposal to reallocate funds from the current budget reserve to the Handball Feceration of Montenegro in the amount of 200,000 EUR to support participation of the women’s senior national team in the 2024 European Championship, which will be held in Hungary, Austria, and Switzerland.

The Cabinet approved the proposal to reallocate funds from the current budget reserve to the Basketball Club Budućnost Voli in the amount of 100,000 EUR to cover the costs in participation in the EuroCup.

The Cabinet approved requests for the allocation of de minimis aid to Montecargo and the Railway Rolling Stock Maintenance. In this regard, the Ministry of Finance has been tasked with providing 150,000 EUR each for these companies from the current budget reserve.