Credit Guarantee Fund will make economy more resilient and create over 10,000 new jobs

The Montenegrin Cabinet, at today's session, adopted the Draft Law on the Credit Guarantee Fund. The establishment of the Fund provides long-term benefits for the growth and development of our economy. The Credit Guarantee Fund, as an independent and sustainable institution, will provide easier and increased access to finance for micro, small and medium enterprises, entrepreneurs and individuals engaged in commercial activities.

The Credit Guarantee fund represents a turning point for our economy that could guarantee about 6,000 loans in the next five years in the total amount of over 220 million, which will create an opportunity to create about 11,000 jobs. We follow the good practices of some European countries with the support of credible institutions such as the European Bank for Reconstruction and Development, which we thank for recognising a partner in this Government, said Minister of Economic Development Jakov Milatović.

He reminded that the Ministry of Economic Development in the previous period worked intensively on creating the Fund and added that, listening to the needs of the economy and analyzing past and current global changes and disturbances, the necessity of forming such an institution in our economy was additionally confirmed. The establishment of this important institution will create new jobs and encourage domestic production.

The initial capital of the Fund, provided by the Government in the budget for 2022, amounts to 10,000,000 euros.

The funds of the Credit Guarantee Fund are intended for companies or entrepreneurs who have limited access to financing. So, in addition to the MSME sector, which is the dominant segment of the Montenegrin economy, the funds are intended for special groups such as: companies majority-owned by women, farmers, tourism companies, IT companies, companies for energy efficiency and renewable energy sources and many others.

By establishing the Fund, we express our readiness to create institutional frameworks that will enable faster development of our economy. In order to respond to the crisis, but also to strengthen the most important segment of the Montenegrin economy (MSME), the Fund will be a long-term partner of the Montenegrin economy on the path to business development and improvement.