The Government of Montenegro approved a €30 million loan from the Council of Europe Development Bank for the Development Bank of Montenegro under the programme “Support to MSMEs in Montenegro – 2.” The financing forms part of a wider programme valued at approximately €43 million, with the Council of Europe Development Bank covering up to 70% of eligible costs.
Funds aimed at investment and business expansion
The loan facility is intended to support investment projects and working capital needs of micro, small and medium-sized enterprises (MSMEs) in Montenegro. Eligible uses include financing for equipment purchases, construction, business expansion and modernisation projects.
The programme provides additional financing capacity for smaller companies facing limited access to long-term funding sources.
MSMEs to receive financing support
The availability and impact of the facility will depend on conditions including final interest rates, repayment maturities, collateral requirements, sector eligibility criteria and the speed of fund distribution to borrowers. Potential demand for financing is expected among companies operating in areas including tourism supply chains, food processing, logistics, energy-efficiency services and light manufacturing, as well as businesses preparing to meet EU technical and environmental requirements.
