The Government of Montenegro has announced a new initiative to enhance the competitiveness of local exporters through a state-supported export insurance mechanism. Managed by the Ministry of Finance, this scheme is designed to assist Montenegrin companies in navigating foreign markets more effectively. The Development Bank of Montenegro will serve as the export-credit agency, providing coverage against non-market risks for exporters of goods and services.
This export insurance mechanism aims to address gaps in the private insurance market, where commercial providers often fail to cover certain risks. It will specifically cover non-market risks, including both commercial and political uncertainties that typically fall outside the purview of private insurers. The Ministry of Finance indicated that this support is intended to reduce the uncertainties faced by exporters when engaging in international sales.
The draft regulation governing this initiative has been reviewed by the Agency for Protection of Competition, which determined that it does not constitute state aid as it only addresses risks not covered by existing European Union export-credit insurance regulations. However, the agency warned that any future inclusion of temporary non-market risks could be viewed as state aid and would need to adhere to relevant control laws.
The regulatory framework for this initiative aligns with European Union directives on export-credit insurance and financing, ensuring compliance with international standards. By allowing the Development Bank to underwrite a portion of export risks on behalf of the state, Montenegro seeks to provide its exporters with enhanced security when entering new markets, especially where commercial insurance options are either unavailable or excessively costly.
This initiative is part of a broader strategy to improve export competitiveness, attract foreign investment, and support the internationalization of Montenegrin businesses. It aims to tackle structural challenges within the country’s trade performance and promote diversification into export-oriented sectors.
