The establishment of the Credit Guarantee Fund is a pivotal development for Montenegro’s financial system and economy, according to Irena Radović, Governor of the Central Bank of Montenegro (CBCG). She affirmed that the CBCG is fully prepared to contribute within its jurisdiction.
Radović made this statement during a meeting with Deputy Prime Minister and Minister of Economic Development Niko Đeljošaj, EBRD Office Head Remon Zakaria, and Michael Gold from the international consulting firm Crimson Capital, which is engaged in the Credit Guarantee Fund project in Montenegro. The discussions focused on the establishment of the fund, its regulatory framework, and the CBCG’s role.
The participants concurred that creating the Credit Guarantee Fund represents a major advance for Montenegro’s economy. Both domestic and international institutions involved in the project are highly committed to its success.
Radović emphasized that the CBCG is ready to provide comprehensive support, as the Credit Guarantee Fund has the potential to significantly benefit the Montenegrin economy, particularly its most vulnerable sectors. The fund is expected to support financing for entrepreneurs, micro, small, and medium-sized enterprises, startups, as well as women and youth in business, thereby fostering their growth and the overall prosperity of the Montenegrin economy.
Đeljošaj expressed his contentment with the meeting, noting that the government, along with other relevant institutions, will work towards establishing the best regulatory framework, aligned with top standards and practices. The support provided by the Credit Guarantee Fund and the Development Bank will offer additional momentum to the economy, especially benefiting micro, small, and medium-sized enterprises.
Zakaria highlighted the fund’s objective to assist businesses and entrepreneurs who face restricted or challenging access to commercial bank financing. It will focus on potential clients who are not sufficiently covered by existing financing options, thus enhancing the banking sector’s engagement with micro, small, and medium-sized enterprises.
Gold added that the goal is to create an independent, sustainable guarantee fund in Montenegro, adhering to the best international practices.
The Credit Guarantee Fund will offer guarantees for loans granted by banks to micro, small, and medium-sized enterprises, aiming to ease access to financing for those with valuable projects but insufficient collateral. Its main functions include increasing loan accessibility, reducing risks for financial institutions, and supporting economic development.
