Yesterday, at a telephone session, the government adopted information on the intention of the Government of Montenegro to buy shares of Montenegro Stock Exchange AD Podgorica owned by Atlas banka in bankruptcy AD Podgorica.
As announced by the Public Relations Office, the information was adopted based on the obtained consent of the majority of the members of the Government.
“The information highlights the importance that the Ministry of Finance and the Government monitor developments on the capital market and, in case of adequate offers, actively participate in the purchase of shares. This includes the possibility of purchasing shares in the “Montenegroberza” AD itself, which would contribute to the institutional presence of the state in this market,” it is stated. in Government information.
They remind that the ownership structure of “Montenegroberza” AD is such that over 50% of the share is held by investment companies whose shareholders cannot exercise their rights due to the ownership of shares in “Montenegroberza”, based on court decisions on the blocking of assets. They add that when the Stock Exchange was founded, the state was one of the first shareholders, and that “the proactive role of the state in the sphere of public finance implies a presence on the capital market as well.
“Given that in the last few months there has been a significant shift in that direction and that the intention of the state is to take an even greater share in the capital market in the future, it is to be expected that in cooperation with the institutions of the capital market (Montenegro Stock Exchange and CKDD) it works in a coordinated manner to create a more favorable and safer environment for investing.
Investment security is not ensured, precisely because the management of the “Monetengroberza” is carried out by minority shareholders, the largest number of whom are from abroad, the Government states. They point out that it is a logical conclusion that the State enters the ownership structure of “Montenegroberza” in as large a percentage as possible.
“Which in itself would automatically lead to the return of confidence and security in the capital market, and on the other hand, enable the State to borrow more cheaply and easily on the domestic capital market,” the announcement states.
In addition to the above, the State also has an economic interest in the purchase of the aforementioned shares.
“Because the current capitalization of the “Montenegro Stock Exchange” is over two million euros (one share = 600 euros), while the total assets (assets of the Montenegro Stock Exchange) according to the balance sheet as of September 30, 2022 are over 2.5 million, of which only the cash item accounts for 1, 5 million euros,” said the Government.
