Minister of Finance and Social Welfare Milojko Spajić and Minister of Economic Development Jakov Milatović, on behalf of the Government of Montenegro, signed Cooperation Agreements on the implementation of support measures for the second quarter of 2021 with 12 commercial banks operating in Montenegro. The contracts define the conditions under which micro, small and medium-sized enterprises (MSMEs) and entrepreneurs will receive EUR 40 million, out of the total planned EUR 70 million from interest-free sources of the Council of Europe Development Bank (CEB). The total value of this important project should amount to 140 million euros, given that the Government expects the banking sector to participate with the equal amount provided by the state.

This is just one in a series of government support measures for economic recovery affected by the pandemic, and more favourable lending conditions were provided in cooperation between the Government of Montenegro and commercial banks, with the support of the Council of Europe Development Bank (CEB).

The Government of Montenegro has concluded a credit arrangement with the Council of Europe Development Bank (CEB) to support the economy through loans for working capital and investments, in the amount of EUR 40 million, with the possibility of concluding an additional agreement for another EUR 30 million, said Minister Jakov Milatović during the signing of the Agreement.

He reminded that the corona crisis disrupted the Montenegrin economy, and that the lack of financial resources and illiquidity led to a larger number of credit applications intended to preserve the sustainability of business.

Minister of Finance and Social Welfare Milojko Spajić pointed out that the state has provided preconditions for the end users of MSME loans and entrepreneurs to receive more favourable credit conditions, which contributes to the recovery of the economy. He emphasised that the Government, through this project as well, wants to support the economy for preserving jobs and new employments.

Effective interest rates should range from about 1.5% to 5.5%, depending on whether the loan is intended for liquidity or investment, depending on the creditworthiness of the client, as well as other parameters defined by the business policy of the bank where the client applies for a loan.

The possibility of refinancing loans approved since 1 March last year (during the pandemic period) is also included, Spajić said.