The government of Montenegro has sanctioned a loan amounting to €30 million from the Council of Europe Development Bank to the Development Bank of Montenegro. This funding is part of the initiative titled “Support to MSMEs in Montenegro – 2.”
The overall programme is estimated to cost around €43 million, with the Council of Europe Development Bank covering up to 70% of eligible expenses. The financial resources will be utilized for various investment projects and working capital needs, which include equipment acquisition, construction, business expansion, and modernization efforts.
This financial facility aims to alleviate the challenges associated with the limited access to long-term financing faced by smaller enterprises in Montenegro. The success of this initiative will hinge on several factors, such as interest rates, loan maturities, collateral requirements, sector eligibility, and the efficiency of fund disbursement to borrowers.
Anticipated demand for these funds is expected to be strongest among sectors such as tourism services, food processing, logistics, energy efficiency solutions, light manufacturing, and businesses preparing to meet EU technical and environmental standards. The programme is expected to yield greater economic impact by financing productive equipment and enhancing export capacity rather than solely providing short-term liquidity support.
