Montenegro: Investment and Development Fund has a new program for 2023., News
The Investment and Development Fund (IDF) plans to allocate 150 million euros in loans to companies and entrepreneurs in the coming year. IRF loans are treated as state aid, which is why the 2023 program and its compliance with the Law on State Aid were checked by the Agency for the Protection of Competition (AZZK).
As stated in the document, the aim of the aid is to improve the competitiveness of the economy, based on the green economy and digital transformation, the development of priority sectors, balanced regional development, ensuring the liquidity of micro, small and medium enterprises and the diversification of economic activities. Support will also be given to special target groups (young people, beginners in business, women, individual agricultural producers) in order to create conditions for greater employment, increased work activity and mobility of workers, with the support of guarantee schemes.
The main goal of the program Is regional development, environmental protection and development of small and medium enterprises.
- IRF support programs are focused on increasing the number of employees and on providing support to priority sectors of the development of the Montenegrin economy, which will also affect the reduction of regional differences in the country. In addition to the priority sectors (tourism and catering, agriculture and food production, green economy, digital transformation), investments will also be made in the development of entrepreneurship through support for young people in business, start-up entrepreneurs, innovative companies, the ICT sector, women in business, agricultural producers and similar . The expected benefits relate to the creation of new jobs and the preservation of existing ones, as well as the improvement of entrepreneurship, competitiveness and the reduction of the import dependence of the economy in compliance with the principle of sustainability – it is stated in the program.
The IRF is headed by Irena Radović.
IRF estimates that between 101 and 500 users will take out loans in the coming year.
The source of financing of 150 million loans is the European Investment Bank, the French Development Agency and the Development Bank of the Council of Europe.
- Guided by the principles of prudent banking operations, in accordance with the regulations of the Central Bank (CBCG), the financial plan for 2023 foresees the placement of funds in the amount of at least 150 million euros – the IRF stated.
One of the goals of the placement of 150 million is to reduce import dependence and improve the foreign trade balance.
The available portfolio refers to short-term, medium-term and long-term loans.
- The credit conditions under which the IRF instruments will be implemented for the year 2023, towards the end user, are as follows – loan amount up to 5 million euros, loan repayment term up to 15 years (including the possibility of using a grace period), grace period up to five years , a proportional interest calculation system adapted to the needs of the economy and the sustainability of the IRF. Exceptionally, the maximum amount of credit/factoring will be at the level of up to 10 million euros, while respecting the exposure limits defined by the acts of the IRF – the program says.
They would like to privatize Plantaže, the Institute.
A special segment in the planning of business activities for 2023 is the privatization of shares and shares owned by IRF.
- In connection with the development of the privatization plan for 2023, the IRF proposed the sale of shares through the stock exchange for Montekargo, Kotor project, Crnagorakop Danilovgrad, and privatization through a public tender for Montepranco Bokaprodukt and Durmitor Tourist Center – the document says.
IRF owns, together with other owners of state capital, shares in important economic entities – Barska plovidba, Institute Dr. Simo Milošević, 13 July – Plantaže, Marina Bar and HTP Ulcinjska Riviera.
- Bearing in mind that the IRF together with the other owners of the state capital owns the majority package of shares (greater than 51% of the share capital), it was suggested to the Privatization Council to consider with the other owners of the state capital the possibility of privatizing the aforementioned companies – the IRF stated for local media.
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