The European Investment Bank (EIB) provided a grant of 400 euros for technical support to the Investment Development Fund (IRF), in order to strengthen its capacity to provide support to the economy.
"The grant will strengthen the capacities of the IRF in providing financial services to small and medium-sized enterprises in Montenegro, with the aim of improving investments and creating new jobs", announced the IRF.
That technical support from the EIB will ensure the improvement of the organizational and business model of the IRF in accordance with the best practice of state development banks in the EU.
The IRF said that the EIB grant aims to accelerate the recovery and growth of the private sector in Montenegro and create new employment opportunities, especially for young people, women and other vulnerable groups.
"The grant is part of the Economic Resilience Initiative (ERI) established by the EIB in 2016 to provide financing for accelerated growth, job creation, social cohesion and the development of key infrastructure projects in the Western Balkans," the statement added.
The Vice President of the EIB, Liliana Pavlova, who is responsible for operations in Montenegro, said that they are delighted to have the opportunity to strengthen the capacities of the IRF in providing support to the Montenegrin economy and encouraging sustainable growth.
"Together with our long-term partner in the region, we have so far provided over 470 million euros for the Montenegrin economy. I am happy that our cooperation with the IRF is expanding to ensure support for companies facing difficulties in accessing financing," said Pavlova.
According to her, by strengthening the capacities of the IRF through technical support, the EIB will contribute to the faster growth of the private sector and the transformation of Montenegro into an inclusive, digital and sustainable economy.
The executive director of the IRF, Irena Radović, announced that they are looking forward to expanding cooperation with the EIB through this extremely important technical support program.
As she assessed, the exchange of experiences and the application of the best practices of state development banks from the EU will significantly strengthen the IRF, redefine the business model and look at the conditions for transformation into a state development bank.
"Thanks to this grant, the IRF will improve its business and organizational model, all with the aim of financing sustainable growth and developing competitiveness, while continuously creating opportunities to create new jobs. This will contribute to the accelerated sustainable development and recovery of the Montenegrin economy after the pandemic", believes Radović.
Since the beginning of the pandemic, in 2020, the EIB has invested 100 million euros with the IRF, which helped the recovery from the pandemic for about 350 companies in Montenegro.
Last year, the EIB signed the first loan with the IRF to support the introduction of energy-efficient practices and projects among small and medium-sized enterprises in Montenegro, enabling a faster transition to a sustainable and circular economy in the country.
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