Montenegro’s Parliament has passed a law establishing a Credit Guarantee Fund aimed at stimulating and accelerating the country’s economic growth by improving access to finance for businesses, entrepreneurs, and individuals engaged in entrepreneurship.
Nik Đeljošaj, Deputy Prime Minister for Economic Policy and Minister of Economic Development, explained that the Fund will primarily support micro, small, and medium-sized enterprises (MSMEs) by targeting clients who currently have limited access to financing. This initiative is expected to activate untapped potential within the banking sector.
The European Bank for Reconstruction and Development (EBRD) acted as Montenegro’s consulting partner in setting up the Fund and will continue as a strategic partner.
The Fund will operate independently with an initial capital of €10.6 million provided by the government. Out of this, €600,000 will be used to start the Fund’s operations, while €10 million will be allocated to support the economy.
Under the Fund’s guarantee scheme, 50% of the loan guarantee risk will be covered by the Fund, with the remaining 50% borne by the commercial banks issuing the loans, sharing the burden and risk.
In the same parliamentary session, laws on state aid control, amendments to property tax legislation, and banking bankruptcy and liquidation were also adopted. Additionally, the Parliament approved laws on railways, tax advisors, and protection of persons and property.
