Corporate insolvency is one of the most serious challenges facing the Montenegrin economy, said Social Democrat (SD) MP and European Union representative Boris Mugoša.
"The number of blocked companies and entrepreneurs has increased by more than 2,3 thousand compared to the end of 2020, and the amount of blocked debt has more than doubled and increased by almost 820 million euros," Mugoša said in a statement.
He warned that micro and small businesses, which make up 93 percent of the economy, have been operating at a loss for the sixth year in a row.
Mugoša also reminded that he has been proposing concrete measures to improve the liquidity of companies for a long time.
"In addition to favorable credit support, it is necessary to continuously work on reducing (para)fiscal charges, then switch to a model of paying value added tax (VAT) based on the invoice collected, not issued, apply the institute of multilateral compensation, i.e. offsetting liabilities and receivables between multiple companies, better and more consistently apply antitrust policies, control the deadlines for settling financial obligations in order to eliminate the practice of "free credit" of certain economic actors from suppliers and support economic entities that are on the verge of closure due to problems with the collection of receivables resulting from the method of forcing unreasonably long payment deadlines," said Mugoša.
The Montenegrin economy, he believes, desperately needs a serious development strategy, which will clearly define the necessary structural reforms for the next ten years that will contribute to its diversification, improvement of its liquidity, competitiveness and productivity.
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