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Wednesday, April 24, 2024
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Montenegro’s economy: Growth in GDP and infrastructure investment

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The index and turnover marked the week on the Montenegro Stock Exchange in which Monstat announced that Montenegro’s gross domestic product (GDP) grew by 4.3 percent in the fourth quarter.

The value indicator of the top ten companies MNSE10 weakened by 3.2 percent to 986.45 points, and the MONEX by 2.6 percent to 14,765.96 points.

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Turnover amounted to 22.6 thousand euros and was 2.7 times lower than the previous week.

According to preliminary results, GDP in the fourth quarter amounted to 1.75 billion euros, while in the same period in 2022 it was 1.59 billion euros.

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The week was marked by the news that the European Bank for Reconstruction and Development (EBRD) approved a favorable loan of 200 million euros for the continuation of the construction of the highway from Mateševo to Andrijevica.

Prime Minister Milojko Spajić said they received direct information from the EBRD about the dates of the works and the deadlines they imply.

“We received information from them that they are interested in continuing the construction of the highway,” Spajić said at a press conference after the government session.

He announced that alongside the 200 million euro loan, there would be a grant from the European Commission (EC) representing 40 percent of that investment, which, according to estimates, amounts to 200 to 250 million euros.

“You can imagine the impact this will have on capital investments in Montenegro, given that the capital budget is 240 million euros this year. From the EC, we will receive a grant of 200 to 250 million euros,” Spajić said.

He said that the terms of the loan are not yet known, but they will be very favorable and far below market rates.

This week, shares of Crnogorski Telekom weakened by ten percent to 1.8 euros, Port of Adria by 9.1 percent to 20 cents, and Jugopetrol by 5.8 percent to 12.24 euros.

The week was marked by the news that all 11 commercial banks in Montenegro recorded a positive result on the banking market at the end of December last year, with a total profit of 145.97 million euros.

The largest profit of 55.57 million euros was achieved by Crnogorska komercijalna banka, followed by NLB and Adriatic bank with profits of 26.61 million and 15.72 million euros, respectively, according to data published on the Central Bank (CBCG) website.

During March, and some as early as next week, banks operating in Montenegro will offer lower interest rates on loans to citizens, it was agreed today at a meeting between the governor of the Central Bank (CBCG), Irena Radović, and the management of banks operating in Montenegro.

“Considering the challenges faced by Montenegrin citizens and with the intention of contributing to the preservation of their standard of living, the CBCG has initiated, and commercial banks have supported, the initiative to reduce interest rates on loans to citizens,” the CBCG statement said.

Radović said they believe that, in addition to the benefits for citizens, the offered credit lines with lower interest rates will stimulate the strengthening of market competition, opening up space for additional adjustments to the pricing policy of banks.

Shares of CG Produkt strengthened by a whopping 112.4 percent this week to 21.24 euros, Profit App by 13.6 percent to 18.18 euros, and Crnogorski elektroprenosni sistem (CGES) slightly to 1.27 euros.

Shares of Elektroprivreda Crne Gore (EPCG) strengthened by 3.7 percent to 5.32 euros. The average February electricity bill for households in Montenegro, excluding unread meter readings in non-permanently inhabited buildings, amounted to 36.64 euros, according to EPCG.

“Households in Žabljak have the lowest average consumption worth 18.79 euros, while the highest average consumption of the previous month was recorded in Tivat, where households spent electricity worth 46.8 euros on average,” the statement said.

Wholesale and Port of Bar shares remained at 25 euros and 36 cents, respectively, from the previous week.

Employees of the hospitality sector of the Institute “Simo Milošević” have been on strike since Thursday, while other segments of this healthcare institution will stop working from March 25.

From that date, as the President of the Institute’s Union, Marija Obradović, told Vijesti, patient admissions will be suspended in all departments except pediatrics.

She explained that employees of this healthcare institution received their November salary on December 25 last year, which is also the last one they received, so they are three paychecks behind.

The hospitality sector of the Institute announced the strike decision in recent days, while other segments submitted their decision on Wednesday.

Obradović emphasized that the strike decision was made based on a meeting of the Union’s Executive Board.

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