Directorate for development of small and medium enterprises and Ministry of Economy organized Round Table on „How to improve credit financing for small and medium enterprises“ on Friday, 13th November 2009, in hotel Apart „Premier“.

Beside Mr. Zoran Vukčević, director of the Directorate for development of small and medium enterprises, Mr. Branko Vujović, minister of the Ministry of Economy also participated, as well as representatives from Central Bank of Montenegro, Ministry of Finance, Chamber of Economy of Montenegro, Federation of employers of Montenegro, Montenegro Business Alliance, and representatives of all commercial banks.

Government of Montenegro approved, on its session of 5th November 2009, the information on program realization „Public support and assistances for small and medium enterprises for 2008 and 2009“, with the proposed model of financing project already submitted to commercial banks.

The program is basically directed to entrepreneurship enhancement, development of less developed municipalities, in order to improve their business environment, and thus, reach multiplicative effects, such as increasing the number of small and medium enterprises, decrease the unemployment rate, improve the living conditions of citizens, and to reach the overall balanced regional development of Montenegro, pointed out Mr. Vukčević.

The Program is a part of wider package of measures which Government prepares aiming at eliminating possible sequences of global financial crisis, and is one of the priorities of Economic policy.

The credit support of this program is directed towards new established enterprises, as well as existing ones that have growth potential, in order to enhance entrepreneurship and create competitive sector of small and medium enterprises.

334 projects were sent to business banks for final decision, in the total amount of 19,3 millions €, with 1929 new jobs planned. Only 88 projects were approved in the amount of 7,07 millions €. Since 246 projects in the amount of 12,04 millions € are still „waiting� for approval, Government of Montenegro approved on its session models proposed by Directorate for development of small and medium enterprises, aiming at supporting the remaining projects. Those models are:

Model 1: Cooperation with business banks

– Start up program

a) Financing only 70% of credit amount from the State budget resources
b) Financing 70% of credit amount from the State budget resources, and 30% from bank resources, that will be paid either immediately or with defined delay

– Entrepreneurship enhancement

a) Financing only 50% of credit amount from the State budget resources
b) Financing 50% of credit amount from the State budget resources, and 50% from bank resources, that will be paid either immediately or with defined delay

Model 2: Cooperation with micro-credit institutions

a) Financing 70% of credit amount from the State budget resources, and 30% from micro-credit institution resources, that will be paid immediately.

Government of Montenegro has provided 6,8 mil € from its budget for business banks, the required part of the needed amount for project realization.

It is expected that banks will support joint project realization through proposed models, based on commission credit approving, with the deadline of 31st December 2009, because un-used resources must be returned to State budget by this deadline.