In Montenegro we focus on:
Expanding the economic base through enhancing competitiveness. Although the Montenegrin economy grew rapidly in the pre-crisis period, this growth was unbalanced, driven by a credit-fuelled boom and the propping-up of old and uncompetitive industrial enterprises. The EBRD will support moves to a more balanced growth path through targeted support for small and medium-sized enterprises in all sectors with growth potential and through further strengthening of the financial system
Supporting sustainable tourism, property and associated environmental and infrastructure needs. Montenegro’s tourism sector is likely to be a major growth driver for the country. However, the institutional and infrastructure requirements to unlock this potential are not yet in place. The EBRD will support sustainable practices with strong emphasis on environmental sustainability. Where appropriate, private sector solutions, including Public Private Partnerships, will be sought.
Promoting energy security and efficiency and regional integration of energy markets. There is virtually no competition in this sector and commercial and technical losses in distribution are significant. Montenegro has the potential to become a regional energy hub in the medium to long term. The EBRD will support important interconnections with countries in the region and will invest in projects that improve energy security, advance energy efficiency and lead to greater competition in the energy market.
The EBRD’s latest Montenegro strategy was adopted on 6 November 2013
Current EBRD forecast for Montenegro’s Real GDP Growth in 2015 3.0%
- Montenegro is making progress in EU accession negotiations. Under the new enlargement rules, Montenegro has started their negotiations with the most challenging chapters (23 and 24): Judiciary & Fundamental Rights and Justice, Freedom & Security.
- Economic growth in 2014 was disappointing. A rebound on the back of strong FDI inflows and progress on a major highway project is expected in 2015. Obtaining sustainable growth in the long term will require a more diversified economy together with better standards of public governance.
- A comprehensive approach is needed to tackle the NPL problem. NPLs account for more than 15 per cent of total loans and Many are related to real estate, which makes them harder to resolve.