The government, during a telephone session, made a decision to establish the Development Bank of Montenegro. The decision states that the Development Bank will operate as a joint-stock company aimed at supporting and promoting the economic development of Montenegro in accordance with the law.
- The founder of the Development Bank is the state of Montenegro. The rights and duties of the founder are exercised by the government. The Development Bank is a legal entity with rights and obligations defined by law, this decision, and the Statute of the Development Bank – the government document states.
Establishment costs
The costs of establishing the Development Bank will be covered by the Investment and Development Fund.
The founding capital of the Development Bank cannot be less than 90 million euros.
- The founding capital of the Development Bank consists of the entire capital of the Investment and Development Fund. The total value of the founding capital on the day of this decision is 107.5 million euros. This decision authorizes the issuance of 107,508,716 common shares, each with a nominal value of one euro – the decision specifies.
It is also stated that the Development Bank is liable for its obligations with its assets.
- For the obligations of the Development Bank, the state unconditionally and irrevocably guarantees on first call, without issuing a special guarantee, except for deposits placed in the Development Bank – the document states.
Governance
The governing bodies of the Development Bank are the Supervisory Board, which oversees the operations of the Development Bank, and the Executive Board, responsible for managing the bank and representing it.
The members of the Supervisory Board are appointed and dismissed by the Assembly of the Development Bank. The number of members of the Supervisory Board is determined by the Statute, with the requirement that the board has at least five members, including the chairman, of which two must be independent.
The members of the Executive Board are appointed and dismissed by the Supervisory Board, based on the proposal of the Appointment Committee. The Executive Board consists of five members appointed for a term of four years, with the possibility of reappointment after the expiration of the term.
The authorized representative for the representation and undertaking of all actions necessary for the registration and start of the Development Bank’s operations is Nikola Tripković, the Executive Director of the Investment and Development Fund in transformation.
Activities
The activities of the Development Bank include granting loans, performing factoring and other forms of receivables purchase, and issuing guarantees, particularly to support the establishment, development, and sustainability of micro, small, medium, and large businesses and entrepreneurs; supporting infrastructure projects, water supply, and environmental protection; financing projects of local, regional, and national importance; promoting the competitiveness of Montenegrin products and services; and encouraging employment.
Additionally, the Development Bank will accept deposits and provide payment services in accordance with specific laws.
The bank will generate resources for its operations, including income from its business activities, sales of shares and stakes from its portfolio, and trading financial instruments on the regulated capital market.
With the approval of the government, the Development Bank may utilize international funds and incur debt in Montenegro and abroad in the money and capital markets, in order to carry out its activities in line with the law, the Statute, and the bank’s business policy documents.
This decision will come into force the day after it is published in the Official Gazette.
On October 9, the Assembly once again passed the Law on the Development Bank, as President Jakov Milatović had previously rejected the initially adopted law in late August, returning it to the Assembly for reconsideration.
The law stipulates a three-month deadline for the formal establishment of the Development Bank, with subsidiary regulations expected to be adopted within a year.
