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Representatives of the Government of Montenegro and the World Bank (WB) signed in Podgorica today a Loan Agreement for the implementation of the Second Project of Institutional Development and Strengthening of the Agricultural Sector in Montenegro – MIDAS 2, worth 30 million Euros. The funds will be used for further improvement of the sector of agriculture, rural development, food safety and fisheries, in accordance with the needs of Montenegro’s accession to the European Union in this area… –>
Representatives of the Government of Montenegro and the World Bank (WB) signed in Podgorica today a Loan Agreement for the implementation of the Second Project of Institutional Development and Strengthening of the Agricultural Sector in Montenegro – MIDAS 2, worth 30 million Euros.
The funds will be used for further improvement of the sector of agriculture, rural development, food safety and fisheries, in accordance with the needs of Montenegro’s accession to the European Union in this area.
The deal was signed by the Finance Minister Darko Radunović and the Country Manager for Montenegro and Bosnia and Herzegovina of the World Bank, Emanuel Salinas. The signing of the contract was attended by Country Director for the Western Balkans Region of the World Bank, Linda Van Gelder and the Deputy Prime Minister for Economic Policy and Financial System and the Minister of Agriculture and Rural Development, Milutin Simović.
DPM Simović emphasized that the signing of today’s agreement is a new strong impetus for further development of agriculture, fisheries and food safety systems in Montenegro.
” The new 30 million euros for new development steps, for new jobs in this system, for sustainability and increasing income in existing jobs, a new impetus for accelerated rural development, especially for the north, for the adoption of new standards, in particular in food safety, and strengthening institutions in these sectors. In short, the new MIDAS that we implement with the SB on the basis of success in the previous MIDAS project will be the prerequisites for the growth of competitiveness in the agricultural sector, the strengthening of import substitution and export growth, the achievement of demanding standards in the food safety system, ” DPM Simović underlined.
Compared to the new developments in the field sector, Simović said, apart from MIDAS 2 and the new 30 million euros, there is the assumptions in the Agrobudget that has increased significantly this year, 26 percent compared to the previous year, IPARD program 39 million euros which has already been announced the first public invitation for primary production, and soon there will be another. According to these funds, significant investment potential should be added in the IRF on the basis of which significant and favorable support is provided, precisely for the agriculture sector.
“We can respond to future challenges in the agriculture sector with the key ambition – to open new jobs every day, and to make the existing one more sustainable and stronger from the aspect of income generation of farmers and entrepreneurs. We continue to act responsibly, resolutely in order to realize everything that our future challenges stand for our economy, for the benefit of all citizens of Montenegro, “Simović emphasised.
Country Director for the Western Balkans Region of the World Bank Linda Van Gelder, pointed out that the first MIDAS project realized in the past period in Montenegro has become a brand, which points to the great commitment of the Government and the producers to the goal of improving the quality and production process in the agricultural sector. Van Gelder added that by adopting the standards of the most developed countries in Europe, Montenegrin products will become competitive and ready to be placed on a demanding foreign market.
Country Manager for Montenegro and Bosnia and Herzegovina of the World Bank, Emanuel Salinas emphasized that, through the ongoing efforts of the Government, the EU and the WB, through the previous MIDAS project, the quality of life of farmers, product quality and food safety, animal health and welfare, while preserving the environment, and creating pre-conditions for sustainable entrepreneurship in this sector. sector advancement.
Salinas thanked the Government for the strong partnership, the commitment of the Ministry of Agriculture and Rural Development to the ongoing joint activities in this regard, and expressed the expectation that the continuation of the project would also be successful.
Minister of Finance Darko Radunović congratulated his colleagues from the Ministry of Agriculture and Rural Development on the very successfully implemented first phase of the MIDAS project. Minister also expressed his gratitude to the World Bank partners who, by supporting and investing in priority development sectors, contribute to the accelerated growth of the Montenegrin economy.
It is my pleasure to talk about the next phase of the project, whose primary objective is to improve the competitiveness of Montenegrin agriculture and fisheries through enhanced Government support in the field of harmonization with the requirements of the EU accession process. Through the grant program, the project will increase economic activity in rural areas, open jobs and complement private investments through user contributions. At the same time, it will help Montenegrin producers to participate in the EU market, and to benefit from access to higher demand for their products.
Regarding the financial aspects of the Contract, Minister Radunović said that the repayment period of the loan is 25 years, the grace period is 5 years, and the interest rate is equal to the 6-month EURIBOR, increased by a fixed interest margin of 1.25% .
“So, these are very favorable lending conditions that allow for a straightforward repayment of obligations and do not create pressure on public finances,” Radunović said.
At the meeting with representatives of the World Bank, held prior to the signing of the agreement, as announced by the Deputy Prime Minister Milutin Simović, the current economic situation in Montenegro was discussed, with emphasis on the results of the measures taken on the consolidation of public finances.
Simović pointed out that it was a pleasure to hear the assessments of WB representatives and their respect for the results achieved by Montenegro in the implementation of the Fiscal Strategy, with the simultaneous strengthening of our economy, the creation of preconditions for accelerating the process of recruitment and opening new jobs. “It was a great opportunity for our WB partners to announce that this is a common result achieved thanks to good communication and partnership of the Government with the World Bank, IMF and European Commission,” DPM Simović underlined.
Source: Government of Montenegro