The Investment and Development Fund of Montenegro (IRF) had a successful year in 2024, posting a pre-tax profit of at least €9.5 million, according to Predrag Drecun, Chairman of the Supervisory Board of the Development Bank of Montenegro (RBCG) and former Chairman of the IRF’s Board of Directors. The Development Bank officially began operations on January 1, 2025, and the IRF was removed from the registry at that time. Drecun emphasized that the transformation of the fund into a bank is a complex process, but the team had worked diligently throughout 2024.
Drecun highlighted that when they took over, the IRF was experiencing a decline in its credit portfolio, but they managed to halt that trend and initiate growth. The total amount of loans and factoring placements in 2024 amounted to €186.12 million, exceeding their original target by 24%.
A major achievement was the elimination of 14 irregularities identified by the State Audit Institution (SAI) before the new management took over in March 2024. The capital of the Development Bank is valued at €107 million, €17 million above the legal minimum.
The IRF had also successfully supported various projects, including the state-owned electricity company and the restructuring of the “Dr. Simo Milošević” Institute. Additionally, it provided crucial support to large systems, such as the Voli company, which has become a major driver of domestic production.
Looking forward, the new Development Bank aims to support Montenegro’s economic growth, focusing on projects that foster regional development, export-oriented production, and environmental sustainability. Drecun emphasized that while the bank is not focused on profit, it will work to stimulate economic development through targeted credit, financial services, and infrastructure projects.
The development of the new bank involves complex changes, including adapting risk management procedures and ensuring compliance with international standards. The bank is also exploring ways to optimize its deposit collection and financial operations to better serve the economy without disrupting the free market or healthy competition.
