10 October 2012
Montenegro: EUR 49 million for SMEs and other projects
The European Investment Bank (EIB) has signed today in Podgorica 4 contracts in favor of the local economy in order to support the country in its path towards the European Union.
“Thanks to this operations we continue to support the country in the central sector of small and medium enterprises and in the reconstruction process after the flood”, said Dario Scannapieco, the EIB
EUR 25 m for SMES
The loan signed by the EIB and the Investment and Development Fund of Montenegro (IDF) concerns the first EUR 25 million tranche of a total EUR 50 million loan aimed at supporting small and medium-sized enterprises (SMEs) and other projects in the country. The operation will finance small and medium sized projects carried out by SMEs as well as final beneficiaries of any size and ownership, including local authorities, in the fields of the environmental protection throughout the country, in compliance with EIB eligibility criteria. A minimum of 70% of the loan amount will be allocated to SME projects.
IDF is the fully State-owned development bank of Montenegro and benefits from an explicit State guarantee in its founding law. IDF started its activities in 2010.
The operation will increase the availability and maturity of funding for SMEs, a key driver for economic and social progress in Montenegro. In the present market environment, the EIB activity will also permit longer maturities of the loans, with a reduction of the overall financing costs. The current loan is the second largest operation in the country in favour of SMEs sector: a first EUR 100 million loan was approved in 2009 and disbursed via 8 domestic commercial banks.
EUR 20 m for Urgent flood relief and prevention
The loan signed by the EIB and Montenegro concerns a project that contributes to repairing and reconstructing the major damage to the public infrastructure (roads, bridges, water supply, hydraulic infrastructure etc) caused by the exceptional rainfall and flooding of November and December 2010 as well as for the acquisition of some new equipment to improve weather forecasting and flood warning. The EIB finances a significant part of the EUR 25 m total project costs in order to restore normal conditions as quickly as possible.
EUR 0.6 m funding agreement for reconstruction of water supply in Cetinje
The contract is referred to a funding agreement for a EUR 0.6 m grant for the reconstruction of water supply in Cetinje under the provision of the Western Balkans Investment Framework (WBIF). The WBIF was launched three years ago by the European Commission, the EIB, the EBRD, the Council of Europe Development Bank and several bilateral donors, the majority of which are EU Member States, to finance priority projects in the Western Balkans. The WBIF focuses on key socio-economic sectors including energy, the environment, transport, social infrastructure and private sector development. Its objective is to pool and coordinate different sources of finance and leverage loans with grants for priority projects in the countries of the region.
EUR 3.5 m grant agreement for the realization of a wastewater treatment in Pljevlja
This agreement refers to a European Union contribution in the form of a grant from the IPA (Instrument for Pre-Accession) National programme for Montenegro in support of investment in Pljevlja co-financed by the EIB loans under the project entitled “Montenegro water and sanitation”. The total amount of the grant agreement signed by the EIB and Montenegro is EUR 3.5 m.
Notes to editors:
The European Investment Bank (EIB), the long-term financing institution of the European Union, supports viable capital investment projects furthering the policy objectives of the Union. In the countries of the Western Balkans, the financing operations of the EIB contribute to facilitating the integration process with the European Union.
EIB lending operations in Montenegro amount to some EUR 350 million since the start of its activities in the country in 2002.
Marco Santarelli, email@example.com, +39 331 6595594