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18/05/2017

The Central Bank of Montenegro Governor, Mr Radoje Žugić, PhD, attended the European Fund for Southeast Europe (EFSE) Advisory Group meeting and the Fund Annual Assembly held on 17 and 18 May 2017 in Split.

The Advisory Group, as the Fund main organizational body, consisted of the regional central bank representatives, gathers annually with the aim of making connection between the local market and the Fund. Namely, Luxembourg-based EFSE Fund, established in 2005 at the German KfW development bank initiative, functions on the public-private partnership principle, collecting donators and investors funds which are then placed with clients in transitional countries through commercial banks and microfinance institutions. The EFSE Fund provides loans for small and medium-sized enterprises, agricultural and housing loans, as well as a technical assistance.

The plans of the Fund for the upcoming period were discussed at this year`s EFSE Advisory Group meeting. Their implementation, through sustainable funding, will contribute to strengthening of economic growth and prosperity in the region.

The Governor Žugić pointed out in his speech that it would be necessary for the Fund to promote the demonopolization principle when allocating support. “Providing support to individual clients, especially in microcredit institutions sector, characterized by high level of interest rates, does not contribute to healing of these vulnerabilities, but only to their extending” – said the Governor Žugić and acknowledged the Fund management for their continuous support provided to Montenegro. 

Since its establishment in 2005, the EFSE Fund invested EUR 190.6 million in Montenegro, mainly in industries and services, as well as in trade and agriculture.