Governor Žugić Meets the EBRD Consultant for Establishing Credit Guarantee Fund


22/11/2021

The CBCG Governor Radoje Žugić met with Michael Gold, Managing Director of the international consulting company Crimson Capital. The European Bank for Reconstruction and Development (EBRD) engaged this firm as a consultant within the project of establishing the Credit Guarantee Fund in Montenegro.

Governor Žugić said that the preparation of the Law on Credit and Guarantee Fund is underway, in which representatives of the CBCG are also participating.


“We consider that the establishment of the Credit Guarantee Fund is essential for our economy, especially considering that the most significant number of employees in Montenegro work in SMEs. The establishment of the Credit Guarantee Fund will also contribute to the GDP increase in the future, which is our goal”, said Žugić.


The Credit Guarantee Fund should provide financial support for the companies development and strengthening. Commercial banks could reduce risk, create and offer more favourable credit lines, and reduce the level of interest rates.


Mr Gold said that the objective is to create an independent, long-term sustainable guarantee fund in Montenegro based on the experience of best practices from around the world. The aim is also to improve access to finance for companies and entrepreneurs in agriculture, tourism, the IT industry, and other essential areas and those whose business has been affected by the COVID crisis.


“The credit guarantee fund is established to benefit companies and entrepreneurs who do not have much experience in obtaining loans, do not have enough assets to offer as collateral, or in some other way have difficult access to financing. The credit guarantee fund enters there and provides a partial guarantee to cover credit risk, making further decision making to banks easier for banks”, said Gold.