Government adopts decree on boosting foreign and domestic investment

    Podgorica, Montenegro (30 January 2014) – At yesterday’s meeting, Montenegro’s Government adopted a decree on fostering direct investment in order to increase foreign and domestic investment 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 investment regardless of whether they are domestic or foreign, which means there will be no favouritism of any kind on that matter. By adopting the decree, the Government is encouraging the entities able to increase the level of employment and 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, the decree will apply to the investment amounting to 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. The 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 were not provided, Minister Kavarić underlined. In that regard, these guarantees could be activated if the investors failed to meet the requirements.

    Having in mind the Government’s priorities in this area and competitiveness in the global market, positive effects are expected in the coming period, Minister Kavarić pointed out.

    Source: Government of Montenegro