Developments in 2009 appear to have confirmed lingering doubts about the sustainability of Montenegro’s past growth. Despite resilience in the important tourism sector and continued privatizations, GDP is preliminarily estimated to have contracted by 7 percent (a steeper drop than elsewhere in the region); overall employment (including foreign employment) is estimated to have fallen by 15 percent; and the budget deficit and public debt deteriorated to 3 and 39 percent of GDP, respectively. Meanwhile, and notwithstanding signs that the contraction is easing, there are few signs of an imminent recovery. However, with the right policies, the Montenegrin economy should be able to quickly return to healthy growth, but the need for policy adjustment is urgent and far ranging. Fundamentally, there has to be a transition out of the previous growth model that was based on very large capital inflows, high leverage, booming real estate, and, more recently, procyclical fiscal policy. The immediate challenge is to manage the still needed balance sheet corrections. In addition, sustained efforts are called for to further strengthen the banking system, to make public finances more sustainable, and to advance with growth enhancing structural reforms, especially in the labor and product markets... More

Moody's Investors Service said it may raise the credit outlooks on five emerging European countries by July as the economies recover from recession and their banking systems stabilize. Moody's may upgrade to stable from negative the rating outlooks for Hungary, Latvia, Lithuania, Estonia and Montenegro, Kenneth Orchard, a London-based senior analyst at Moody's, said... More

Ministry of Finance published a Bulliten no 18, which contains an overview of activities in the period October-December 2009... More  download

The Government of Montenegro and the Union of Administration and Judiciary have established negotiating teams for the development of the first Draft Collective Agreement in the field of administration and judiciary, being a result of qualitative social dialogue. It was agreed to finalize the document by the end of January 2010. Up to present, negotiating teams held two meetings, and the third is scheduled for 30th December 2009. The joint assessment is that negotiations are held in good spirit, with full mutual respect of social partners and their arguments. The objective is to sign the Collective Agreement, providing labor rights, at the same time creating conditions for administration and judiciary efficiency. A joint press conference of Unions and Employers will be organized after finalizing the Collective Agreement, will be organized in a joint press conference the representatives of trade unions and employers... More

…The global financial and economic crisis has left a deep scar in the world’s economy making certain that the future recovery will be tough. It seems that a lot of time will be consumed by restoring the confidence of all participants in economic and financial flows. The previous year was marked, above all, by the skepticism and fear both of the citizens and the bankers, and perhaps the greatest was the fear of investors fearfully observing and analyzing all further investments plans in 2009. However, Montenegro, is isolated from the global context and seceded to complete practically the most important projects and investments – to lease Lustica Peninsula, recapitalized and partially privatize EPCG , initiate the construction of the highway Bar-Boljari, and above all, to continue with infrastructure – related investments initiated in the pre-crises period. For Montenegro this year was, perhaps, the most challenging in the economic and political sense in the last decade, if we exclude the year in which the citizens voted for independence . However, this was the year to sublimate achieved results and to summarize long-term economic policies. The crisis once again confirmed that it is important to work on further liberalization of the economy, strengthening market principles, Doing Business programmes and free trade in the course of next year. In order to achieve aforementioned objective, the understanding of two administrations is of utmost importance - local and national, regarding to the adjustment of redundant lengthy procedures of issuing various permits, strict legal solutions, thus I see a chance in this area for reaching consensus of national importance… More

Signed Contract of sale of 41.1402% of share capital of the company “Lovcen osiguranje" AD Podgorica. The contract was signed between the Government of Montenegro, Pension and Disability Insurance Fund, Employment Bureau of Montenegro and the Development Fund of Montenegro, as well dealers and and Zavarovalnica Triglav, JSC Slovenia, being the buyer shares. Zavarovalnica Triglav along with related parties became the owner of 91.83% in Montenegro's largest insurance company. The Insurance Supervision Agency issued consent for the purchase of 83,331 shares in “Lovcen osiguranje”, and the purchase of Zavarovalnica Triglav was made in the amount of 5,999,832 Euros, i.e. 72 Euros per share... More

"The Adoption of the Budget Law for 2010, is the most important regulation among other regulations that we will adopt this year, and this Law will direct the future and stability of public finance of Montenegro in forthcoming years, and will, to the greatest extent, influence the creation of the necessary prerequisites for economic recovery and long - term economic policy implementation. As it was the case of all economies in the world, even Montenegrin economy halt the economic development due to financial stampede destroying much stronger systems than Montenegrin one... More

„... In the light of large steps of Montenegro towards joining the European family, allow me to make a retrospective of few important activities achieved in previous period. Precisely one year ago, Montenegro has submitted a formal application for candidate status in the European Union. In the light of the global economic crisis, which as we can say just reached its peak in the year counting down last days, our commitment to the integration policy did not loose on its intensity and enthusiasm. Consistent implementation of the Stabilization and Association Agreement, confirmed through regular meetings of subcommittees, implementation of priorities defined in the National Program for Integration of Montenegro into the EU, the ratification of the Stabilization and Association Agreement, which I hope is reaching its final phase representing additional positive stimulus of the member states, represent just few indicators that even a small administration may qualitatively respond to major challenges and assumed obligations... More

The government of Montenegro provided funds in the amount of 5 million Euros for the Social Programme for employees of KAP and Bauxite Mines. The aforementioned funds will be paid to the special account of Crnogorska komercijalna banka. The payment of Governments contribution will initiate simultaneously with the payment of finds provided by the KAP for the Social Programme for which the Government of Montenegro issued guarantee.. More

I guarantee success in achieving our objectives, i.e. to provide for the balancing of loans - by increasing loans to decrease to achieve the credit growth. Aforementioned represents a prerequisite for implementing optimistic scenario, or realistic scenario if we fail to generate credit growth of at least 3 to 5% next year then we can talk about recession. Commercial banks in cooperation with the Central Bank must focus on passive interest rates, being one of the reasons why the active output interest rates significantly increased or are considered to be high. It is agreed with commercial banks to increase the use of cash from international financial institutions for lending to small and medium - sized business. It is expected that the lending will spur the adoption of the Law on Development Investment Fund, for which is being estimated that will additionally or significantly assist in providing incentives to lending, because the Fund will dispose funds that may be used as a guarantee in a manner that the Fund will be in position to issue guarantees for up to 50% for certain loans. If the banking sector is entrusted to the Central Bank to be the regulator, than the Central Bank should entail moves for which considers that will provide proper financial sector stability operating on the basis of adopted rules... More