CBCG Governor meets with Deputy Prime Minister of the Government of Montenegro for Economic Policy and Head of the EBRD Office in Montenegro
25/07/2024
The Governor of the Central Bank of Montenegro, Ms. Irena Radović, met today with the Deputy Prime for Economic Policy and Minister of Economic Development, Mr. Nik Gjeloshaj, the Head of the EBRD Office in Montenegro, Mr. Remon Zakaria, and the Managing Director of the international consulting company Crimson Capital, Mr. Michael Gold.
The issues discussed at the meeting covered the establishment of the Credit Guarantee Fund in Montenegro, the regulatory framework and the role of the Central Bank in this process.
The meeting participants agreed that the establishment of the Credit Guarantee Fund is a significant step forward for the Montenegrin economy, and that domestic and international institutions involved in the process of establishing the Fund are very dedicated to this project.
The Governor Radović highlighted that the Central Bank is ready to provide a full contribution within its competences because Montenegro`s economy, and especially its most vulnerable segments, can be significantly supported through the Credit Guarantee Fund.
“The establishment of the Credit-Guarantee Fund is extremely important for Montenegro`s financial system and the economy because it will provide additional support for the financing of entrepreneurs, micro, small and medium-sized enterprises, start-ups, women and young people in business, thus encouraging their further development and prosperity of Montenegro`s economy", said Governor Radović.
Deputy Prime for Economic Policy and Minister of Economic Development, Mr. Nik Gjeloshaj, expressed his satisfaction with today's meeting, stressing that the Government of Montenegro and other relevant institutions will make their best efforts to provide a proper regulatory framework that is in line with the highest standards and best practices.
“The support package that will be offered through the Credit Guarantee Fund and the Development Bank of Montenegro to legal entities in Montenegro, and especially to micro, small and medium-sized enterprises, will be an additional impetus to support our economy,” said Gjeloshaj.
The Head of the EBRD office emphasized that the goal of establishing the Credit Guarantee Fund is to provide support to companies and entrepreneurs who have limited or difficult access to funding from commercial banks.
“The Credit Guarantee Fund will target potential clients that are which will further activate the banking system potential, especially towards micro, small and medium-sized enterprises”, said Zakaria.
Michael Gold, the Managing Director of the international consulting company Crimson Capital engaged in the project of establishing the Credit Guarantee Fund in Montenegro, indicated that the goal is to create an independent and guarantee fund that will be sustainable, in accordance with best international practices.
The Credit Guarantee Fund (CGF) is an institution that provides guarantees for loans granted by banks to micro, small and medium-sized enterprises with the aim of facilitating access to funding for these enterprises which have quality projects and programs but lack the means to provide the necessary collateral for classic form of financing. One of the primary functions of the CGF includes increasing the availability of credit, reducing risks for financial institutions, and supporting economic development.