The government of Montenegro will borrow 8 million EUR from the World Bank (WB) for a project to modernize the country’s financial infrastructure and align it with SEPA standards, as outlined in an amendment to the draft budget for next year.
The discussion on this amendment will continue today at the Committee for Economy, Finance, and Budget, as reported by Vijesti.
The executive branch approved a set of amendments to the proposal for the most important economic act of the coming year during an electronic session on Friday.
The amendment is aimed at creating the legal framework for a loan agreement between Montenegro and the World Bank for the modernization of Montenegro’s financial infrastructure and its alignment with SEPA standards (TARGET Instant Payment Settlement Clone Project – TIPS Clone Project). This project, developed with the support of the European Central Bank and the Bank of Italy, will include several countries, including all the Western Balkan nations.
The participating countries will benefit from the development of an instant payment platform, reduced transaction costs, preparation for future migration to the Eurosystem’s TIPS platform, and improved regional cooperation.
This amendment also changes the proposed decisions regarding state borrowing for the upcoming year.
In addition, amendments are proposed for the budget of the transport and capital projects sector, related to new multi-year projects and those that are not completed by the end of this year, with deadlines extended into next year.
Among the proposed projects are the reconstruction of the regional road R-18 Bar-Sutorman-Virpazar, estimated at 64 million EUR, with a deadline extending to 2028; the reconstruction of the promenade in Igalo from Galeb to Titova Vila, estimated at 3.4 million EUR, to be completed by the end of next year; the sanitation of the Zakršnica landfill in Mojkovac, estimated at 5 million EUR; and the construction of a Science and Technology Park in Podgorica, estimated at 13 million EUR.
There are also amendments increasing the value of certain projects due to finalized project documentation. These include the investment in the resurfacing of main and regional roads, increasing the budget from 5 million to 10 million EUR; investment maintenance of regional and main roads, increased from 5 million to 25 million EUR; the construction of a fitness trail around Trebjesa and a sports-recreational park in Nikšić, with the estimated cost rising from 2.57 million to 3.2 million EUR; and the reconstruction and adaptation of the “Vaso Ćuković” Special Hospital in Risan, with the estimated cost rising from 3.5 million to 4.9 million EUR.
The government also adopted a decision to establish a state Development Bank, which will be registered in the Central Registry of Economic Entities. Its founding capital must not be less than 90 million EUR.
The founding capital of the Development Bank will consist of the entire capital of the Investment and Development Fund (IRF), which is valued at 107.5 million EUR.
The decision designates the executive director of IRF, Nikola Tripković, as the authorized representative for the registration of the bank.
