One of the key advantages of transforming Montenegro’s Investment and Development Fund (IRF) into a Development Bank is the enhancement of financing models based on access to European funds, with a particular focus on blended models that include significant grant components.
U.S. Ambassador to Montenegro Judy Rising Reinke visited IRF today, where she met with Executive Director Nikola Tripković and Chairman of the Board of Directors Predrag Drecun.
IRF officials briefed Reinke on the goals and activities of IRF as a state development financial institution and its role in Montenegro’s economic development.
They emphasized that the strategic direction of Montenegro’s development and a strong focus on the EU integration process necessitate further development and strengthening of financial institutions, which is being achieved through the establishment of the Development Bank of Montenegro and alignment with EU needs and best practices.
Discussing the proposed Law on the Development Bank of Montenegro, Tripković noted that a comparative analysis of Montenegro’s regulations with best practices from EU member states indicates that the current legal framework is a limiting factor for the institution’s growth and development, particularly concerning successful EU integration and the use of available funds. This is crucial for creating future programs that will adequately support innovative activities, startups, and other areas, while respecting sustainable business principles.
“The primary goal of the Development Bank is to support and encourage the development of Montenegro’s economy in line with the government’s strategy, goals, and priorities, with innovation and sustainable economy being key among them,” Tripković stated, highlighting the importance of establishing regulatory and administrative conditions to support the economy through export risk coverage and opportunities for additional knowledge exchange with state development banks.
Drecun emphasized the importance of enhancing the competitiveness of Montenegro’s economy by creating new financial instruments. “The Development Bank will be able to offer various financial instruments based on an improved financing model, modeled on development banks in EU member states. For end-users, new financial instruments are crucial for better meeting needs, especially in terms of capital, lower interest rates, longer maturities, use of grant components, reduced collateral requirements, and more, with stronger multiplier effects on the overall economy and better allocation of development resources,” Drecun said.
Reinke thanked the IRF officials for presenting the plans to transform the Fund into a Montenegrin development bank. She announced that the Embassy would continue to support Montenegro’s efforts to improve transparency, accountability, and good governance in all state institutions, with a focus on encouraging entrepreneurial initiatives and diversified economic growth in the country.
The participants agreed that Montenegro and the U.S. have very good and friendly overall relations and excellent bilateral cooperation, with room for further strengthening of economic relations between the two countries. In this context, the meeting represents an important step towards achieving the common goal of prosperity and stability for Montenegro’s economy.
