Business

15 Jun 2020, 21:26 PM

June 15, 2020 - State guarantees of up to at least 70% of the amount of the loan for legal entities which were forbidden to work in accordance with temporary measures for the suppression of coronavirus or which had their volume of activities significantly reduced, extension of moratorium, delay of the repayment of the due tax duties- are just some of the measures proposed by the Montenegrin Employers’ Union, as part of the third Government’s package of measures.

In order to help Montenegrin recovery to recover, Employers’ Union of Montenegro has prepared Innovated (third) proposal for measures to support economy.

What measures have been proposed?

ECB, IMF and EIB have officially announced increase in the funds aimed at helping WB countries, creating conditions for more favorable credit funds.

“In accordance with that, it is necessary to provide state guarantees of up to at least 70% of the amount of loan for legal entities which were forbidden to work in accordance with temporary measures for the suppression of coronavirus or which had their volume of activities significantly reduced, which would create conditions for the IMF and commercial banks to provide more favorable credit lines”, Union said.

They think that Government and Central Bank guarantees should be earmarked proportionally to the market share of every individual bank in Montenegro, provided that guarantees do not amount to more than 40% of the overall placement of the bank.

Montenegrin employers hold that it is necessary to carry out analysis of the situation and possible scenarios with the aim of earmarking support funds proportionally.

In addition, Investment and Development Fund and commercial banks should enable extension of moratorium on the repayment of loans for legal entities until their business operations are back to normality.

Tax

Montenegrin employers state that it is necessary to extend deadlines for the repayment of due tax liabilities on the grounds of all types of taxes with the possibility of repayment in 24 installments.

“Legal entities should be exempt from paying local public utility taxes, fees for use of the road as access to commercial facilities for 2020, paying real estate tax…”, employers say.

They add it is necessary to revise prices of public utility services depending on whether they worked during the epidemic or not.

They point out it is necessary to exempt legal entities from tourism and hospitality sector from paying fees for the use of temporary facilities in the coastal zone and national parks.

Montenegrin employers stress it is necessary to enable deferred payment of customs and VAT for 90 days and in cycles until economic and money flaws become smooth again.

Labor market and sustainability of jobs

Employers say that it is necessary to adopt special law to regulate work and legal relations in emergency circumstances, or introduce urgent amendments to the Law on Labor and harmonize its provisions with the emergency needs.

It is necessary to reconsider labor costs and reduce specific items related to the salary costs.

“Entrepreneurs and companies that were forbidden to perform their activities should be entitled to a subsidy in the amount of 100% of minimum net salary during six months and 50% of the minimum net salary for vulnerable sectors, as well as deferred payment of taxes and contributions for all those subjects”, Union says.

Long-term measures

Montenegrin employers request introduction of lower VAT rate – 7% on the accommodation services and accommodation services with services of food and non-carbonated and non-alcoholic beverage in hotels and facilities with similar purpose; increase of the generated turnover as prerequisite for mandatory VAT registration from €18.000 to €30.000.

“Entrepreneurs and micro companies would feel most benefit from this increase. The day they enter VAT system, their goods and services are by 21% more expensive, they enter a very demanding and uncertain race with major legal companies and most of them soon become illiquid”, employers say.

Grey economy

Employers call on all competent authorities to commit fully to taking measures and activities to combat grey economy.

“The scale of this negative trend is at alarmingly high level, and according to the official data, this phenomenon is on an upward trajectory”, they warn.

02 May 2020, 23:58 PM
May 2, 2020 - The Montenegrin economy is likely to be struck by the outbreak of the COVID-19 epidemic due to high dependency on tourism, said the head of the European Bank for Reconstruction and Development- EBRD office in Montenegro, Jap Spray, adding that recovery is expected next year.
 
Spray said tourism revenue would decline significantly this year because tourists from major markets may not be able to travel due to measures to contain or reduce their income.
 
He stated that the COVID-19 pandemic has hit a continuing slowdown in global growth as well as global trade growth and is expected to result in a significant decline in production, at least in the short term.
 
"The overall effect will depend on the length of the blockade measures and the structure of the economies themselves. A longer duration of isolation could result in a prolonged recession, while countries with a high share of tourism and other, mostly personal services, in GDP, may be more severely affected," Spray said.
 
According to Spray, cautious mitigation has begun in Montenegro, and rapid recovery is possible provided mass release is avoided while the blockage phase is underway.
 
"However, these estimates are driven by unprecedented uncertainty, and there may be significant long-term economic, political and social impacts," Spray said.
 
Asked how much money the EBRD could lend to Montenegro to help the country cope with the effects of the coronavirus epidemic, Spray replied that the institution had signed ten projects last year and invested nearly 40 million euros.
 
"Before the COVID-19 pandemic, we planned almost to double our business volume, bringing it to the level of EUR 75 million. We are now on track to make it more than triple last year's amount by investing over € 120 million in existing and new clients," said Spray.
 
"With the arrival of COVID-19, our clients needed short-term liquidity, and we began to prepare working capital programs for our clients in the private and public sectors with whom we work directly," Spray explained.
 
The EBRD, in addition to finance, provides advice to SMEs to help them recover from the economic downturn resulting from the pandemic, including refocusing ongoing projects on critical financial management and business continuity issues.
 
"We have several significant projects in the field of renewable energy, tourism, and real estate, which we hope will be successfully implemented in the coming year. We will continue to strengthen agricultural chains and the linkage between agriculture and the tourism sector," Spray said.
 
The EBRD recently approved an increase in funding to support the developing economies in which the bank operates, to EUR 21 billion this year and next.
 
The EBRD, according to Spray, is adapting and scaling up existing instruments and developing new financial and policy support initiatives to prevent the immediate coronavirus threat to the economy.
 
"Under certain conditions, we can now also provide liquidity to municipalities to help maintain basic public services. We provide assistance to all sectors of the economy, especially those severely affected by the crisis with a focus on SMEs. The sectors include financial institutions, tourism, hospitality, manufacturing, and agribusiness," concluded Spray.
09 Jan 2020, 09:57 AM

In 2019, Tivat Airport achieved a new absolute record in the physical volume of traffic, as nearly 1.37 million passengers passed through the two terminals of the airport.

Last year, Tivat Airport had 1,367,282 passengers, which is a 9.7% increase compared to 2018 when there were a total of 1,245,999 passengers.

During 2019, 7,049 aircraft landed on the Tivat airport runway, which is 234 aircraft, or 3.4% more than in 2018.

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Airport Tivat photo S.L

Last year, apart from the opening of the newly built temporary facility of Terminal 2, was marked by an additional increase in the number of lines that carriers enter from the Tivat airport during the summer season, so this airport was connected with about 50 destinations in Europe and the Middle East this summer.

Among the new carriers that have established traffic with Tivat, the most significant is the German national airline Lufthansa, which first appeared on the Montenegrin market, operating from this coastal city during the summer to Frankfurt and Munich.

The announcements of air carriers for this year signal an additional increase in the volume of physical traffic in Tivat airport as new companies wanting to fly to Tivat are announced to the management of the Airports of Montenegro, and the introduction of routes from that airport to some new destinations like Milan in northern Italy has been confirmed.

Text by S.L., on January 8th 2020, read more at Boka News

21 Dec 2019, 19:16 PM

December 21, 2019 - The Gross domestic product (GDP) amounted to €1.63 million in the 3rd quarter of the year, according to preliminary data of MONSTAT. Head of this state body, Ms Gordana Radojević, noted that the GDP real growth rate amounted to 4.7 per cent in the 3rd quarter of 2019.

 

“In the absolute value, we have achieved an added value by more than €100 million compared to the same quarter last year. Positive movements in GDP in the third quarter are the result of increased production in almost all economic sectors,” Ms Radojevic told the press.

She added that the highest growth in the 3rd quarter was recorded in the construction sector.

 

“We’ve recorded a 31.4% growth by measuring the value of completed construction works.”

Enormous contribution to the GDP growth in the 3rd quarter has come from tourism, Ms Radojević concluded.

Text by CDM read more here

To read more about business in Montenegro, follow TMN's dedicated page.

18 Dec 2019, 07:35 AM

December 18, 2019 - Kotor mayor, Mr Željko Aprcović, director of the Direction for Organization and Construction of Kotor, Mr Zoran Mrdak, and executive director of the company Bigova Bay, Ms Branka Lazarević, met in Kotor to sign the agreement on the implementation of an investment – the construction of a high-end tourism complex in Bigova.

 

The agreement announces the beginning of the implementation of an investment whose initiation started 7 years ago.

“The local self-government is proud to have a renowned investor in this business who will invest large sums of money – over 300 million euro – and today is a big day for the Municipality of Kotor,” said the Mayor of Kotor.

The aim of this project is to obtain the new content that will raise the sites in Donji Grbalj to a higher level.

Mr Aprcović said: ”This investment will represent the initial impetus for future investors in this extremely attractive site.”

 

Kotor Municipal Assembly, at its session held on 18 Nov. 2019, passed the decision on resolving relations between the Municipality of Kotor and Bigova Bay and the agreement signed today represents an integral part of it.

Text by CDM, read more here.

To read more about business in Montenegro, follow TMN's dedicated page.

17 Dec 2019, 12:25 PM

Works began on the construction of a roundabout at the former Tivat Municipality building, which was inaugurated by Prime Minister Dusko Markovic.

Due to the commencement of works, parts of Luka Tomanovic street and the Second Dalmatinska Brigade were closed to traffic, and the usual mode of movement of the vehicles through the center of Tivat was changed.

However, the citizens of Tivat have not been officially informed about this by the Municipality, which is the investor of the EUR 300,000 project, which allows for an entrance to the city center.

Text by S.Lukovic, on December 16th, 2019, read more at Boka News

12 Dec 2019, 10:06 AM

The Ministry of Sustainable Development and Tourism (MORT) has issued the urban-technical conditions for the preparation of technical documentation relating to new facilities within the Kotor Port and the future Port Risan, whose construction is reportedly in line with state site studies (DSL) and the Special Purpose Spatial Plan (PPPN) for the coastal area of Montenegro.

According to the PPPN for the coastal area, within the concept of traffic development as ports of local importance are proclaimed ports in Budva, Risan and Zelenika, Porto Montenegro and Kalimanj in Tivat, the Nautical and Tourist Center Kotor, and the city port of Skver in Herceg Novi, and the proposed shipyard port in Bonici.

The ports of Bar, Kotor and Zelenika are classified as commercial, while the marinas are located in Bar, Budva, Risan, Porto Montenegro, Kalimanj, Skver and NTC Kotor.

Text by Dragan Popadic, on December 12th, 2019, read more at Radio Tivat

09 Dec 2019, 10:44 AM

Montenegrin Airports recorded 200,000 more passengers than in the same period last year, which is an excellent business result, said Danilo Orlandic, CEO of the company.

"Better job organization, investment in infrastructure and equipping the airport, as well as better cooperation with representatives of the tourism industry, have made it possible to achieve such good results," Orlandic said in a statement.

The airport in Tivat served more than 1.3 million passengers in the first 11 months, while more than 1.2 million passengers traveled through Podgorica airport.

"The increase in the number of passengers, among other things, is due to the fact that, with the help of the Government, Montenegrin Airports, from year to year, conclude an increasing number of contracts with prestigious airlines from all over the world," the statement said.

Orlandic said the company is constantly working to connect Montenegro with destinations across Europe.

"We believe that next year will be even more successful," concluded Orlandic.

Text by Boka News, on December 8th, 2019, read more at Boka News

05 Dec 2019, 10:28 AM

The beginning of works on the first of three roundabouts on the route of the future main boulevard on the Adriatic highway through Tivat will be marked on Thursday, December 5, at 10.30 am in the settlement Kukuljina, at the exit from the city towards the airport.

On that occasion, the roundabout will be visited by the Mayor of Tivat, Dr Siniša Kusovac, with his associates, and Radenko Čvorović, the executive director of the company „Mehanizacija i programat“, i.e. the main contractor.

The contracted value of the works is 535,000 euros and the deadline for completion is 65 days from the date of commencement.

The roundabout - the intersection on the Adriatic highway in the center of Tivat, near the old Tivat Municipality building will be realized by the company “Vukotic Trade” from Podgorica, for EUR 306 thousand, and the procedure for the implementation of the third roundabout at the building “Dom vojske” is under preparation.

The planning documents previously envisaged two roundabouts, but a third roundabout was included during the project implementation and considering all the facts - traffic flow, local and transit population requirements.

With the construction of roundabouts, the Municipality of Tivat has started the implementation of a demanding project for the construction of the main boulevard, which will improve traffic efficiency and provide better connectivity to suburban settlements.

The main feature of the future boulevard is the width of the corridor of 19 meters with two traffic lanes per direction and the dividing island. According to the terms of reference, five phases of the project are foreseen, namely the construction of three roundabouts and an open lane connecting these roundabouts.

Text by Boka News, on December 4th, 2019, read more at Boka News

02 Dec 2019, 11:12 AM

The first oil well exploration in the Montenegrin submarine will be established in the spring between Bar and Ulcinj, about 26 kilometers offshore, the Ministry of Economy confirmed.

By the end of next year, it will also be known whether Montenegro has significant amounts of oil for commercial use, “Vijesti” writes.

Montenegro has granted concessions to foreign companies to seek oil.

The ministry recalled that, in accordance with the obligations under the concession contract for the exploration and production of hydrocarbons, Eni-Novatek dealers completed 3D geophysical surveys of the Montenegrin submarine on blocks four, five, nine and ten in November and December last year.

"The processing of the collected data is being executed in stages, it is still underway and it is expected that it will be completed by the end of the year," the Ministry of Economy said.

Text by Boka News, on November 30th, 2019, read more at Boka News

27 Nov 2019, 12:42 PM

The contract on the development of the Conceptual Design and the Main Design for the construction of the local road on Lustica has been signed, according to which the preparation of documentation should be completed within four months. This is a major step towards the realization of a project that will solve the long-standing infrastructure problems of the people in Lustica and enable the further development of this peninsula.

The contract was signed by Stevan Katic, Mayor of Herceg Novi and Edward Spahija, CEO of the company “Profil ing” doo, which was selected as the most favorable bidder in the tender.

The contract stipulates that the preliminary design and the main design will be done for the construction of a local road on the route from the existing Rose-Krasici road to the existing Babunci-Krasici road.

The value of this project is 87,120 euros.

Lustica1.jpg

Lustica

It is defined that the Municipality will disburse funds as follows: 30% after obtaining the approval of the Chief Architect in the Preliminary Design, 40% upon submission of the Main Design and 30% after receiving a positive opinion on the Main Design by the Auditor.

Text by Boka News, on November 26th, 2019, read more at Boka News

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