The parliamentary group of the Movement “Europe Now 2” submitted a draft law on the Development Bank of Montenegro to parliament. The proposed legislative solution states that the founder of the development bank is the state of Montenegro, with rights and responsibilities of the founder being vested in the Government.
According to the proposed legislation, the minimum founding capital of the development bank cannot be less than EUR 90 million. “The founding capital of the development bank consists of capital transferred from the Investment and Development Fund (IRF),” the draft law states.
The activities of the development bank will include, among other things, approving loans and conducting factoring. The bank’s mission is to promote the establishment, development, and sustainability of micro, small, medium, and large enterprises and entrepreneurs.
It is stated that the bank will finance projects of local, regional, and national significance, aiming to enhance the competitiveness of Montenegrin products and services.
The proposed legislation specifies that if the development bank, at the request of the Government, approves the placement of funds below the conditions established by the bank’s regulations, the Government will compensate the development bank for the difference up to the level of income that would have been generated by placing funds under those conditions.
The governing bodies of the development bank will include an assembly, supervisory board, and management board.
The operational funds of the development bank will be obtained from income generated by its operations, sale of shares and stakes from the bank’s portfolio, and trading in financial instruments on regulated capital markets.
“The development bank may, with the consent of the Government, use international funds and borrow in Montenegro and abroad in the money and capital markets for the purpose of conducting activities in accordance with the law and the business policy acts of the development bank,” the draft law states.
The Central Bank will oversee the operations of the development bank.
It is envisaged that the Government will adopt the founding act of the development bank within three months from the date of entry into force of this law.
The deadline for registering the development bank in the Central Register of Business Entities (CRPS) is three months from the date of entry into force of this law.
Upon registration in the CRPS, the Investment and Development Fund (IRF) will cease operations, and the development bank will assume all rights and obligations of the IRF, including its employees and assets.
