Cabinet session: Government adopts decree on boosting foreign and domestic investments

    Podgorica, Montenegro (30 January 2014) – At yesterday’s meeting the Government adopted a decree on fostering direct investments in order to increase foreign investments and improve the employment policy, Minister of Economy Vladimir Kavarić stressed following the Cabinet meeting.

    Minister Kavarić highlighted that this decree is aimed at boosting investments regardless of whether they are domestic or foreign, which means there is no favouritism of any kind on that matter. By adopting this decree, the Government is encouraging those entities which are able to increase the level of employment and to invest, he added. Along with a set of system laws, tax policy and various business zone projects, this decree should improve our business environment, the Minister stressed.

    Observing the technical aspects, decree will apply to the investments amounting at least EUR 500 000 and creating at least 20 new jobs, taking into consideration the investor’s references, sustainability of investment projects, productivity, human resources and research and development, Minister Kavarić emphasised. According to our expectations, this decree should improve the level of competitiveness depending on a triage process which will be evaluated in terms of direct subsidy per job between EUR 3 000 and EUR 10 000, he underlined.

    Non of these projects would be implemented if banking guarantees for the Government benefits are not provided, Minister Kavarić underlined. In that regard, these guarantees could be activated if the investors failed to meet the needed requirements.

    Having in mind the Government priorities in this area and competitiveness on the global market, the Government expects positive effects in the coming period, Minister Kavarić pointed out.

    Source: Government of Montenegro