Polat: Turkey is the largest single investor

Investments by Turkish citizens in Montenegro in the first two months of this year amounted to 25,55 million euros, while the total reached 131,97 million euros, the Turkish Chamber of Commerce (TurkCham) announced.

The Executive Director of TurkCham Montenegro, Bariš Polat, said that Turkey was the largest individual investor in the observed period, and that this can be interpreted as a signal of trust.

"The strong growth in investments from Turkey at the beginning of the year further confirms its positioning as one of Montenegro's key economic partners," Polat said in a statement.

He specified that the largest part of that amount was related to intercompany debt, 16,06 million euros, while investments in domestic companies and banks amounted to 11,17 million, and in real estate 8,36 million. Such an investment structure, according to him, indicates a longer-term presence of Turkish capital through financing the operations of related companies.

"The dominance of intercompany debt in the investment structure indicates that Turkish companies are not only acting as financial investors, but also as existing actors that are expanding and strengthening their operations on the Montenegrin market. Such a trend can be interpreted as a signal of confidence in the stability and prospects of the domestic economy, but also as a potential for further deepening bilateral cooperation, especially if existing capital is transferred to new development and production projects," said Polat.

According to data from the Central Bank of Montenegro (CBCG), the total inflow of foreign direct investment (FDI) in the first two months of this year amounted to 131,97 million euros, the largest part of which related to investments in domestic companies and banks, the purchase of real estate and intercompany debt.

Polat stated that Serbia is in second place in terms of investments in Montenegro, right behind Turkey, with 23,77 million euros.

"This is dominated by investments in real estate, 13,28 million, and domestic companies and banks, 9,31 million. A significant inflow was recorded from Switzerland, 7,35 million EUR, as well as the United States, 7,05 million. Germany invested 3,99 million in Montenegro, and Bosnia and Herzegovina 3,36 million," said Polat.

He recalled that the total inflow of FDI in the 11 months of last year, according to data from the Central Bank of Montenegro, amounted to 867 million euros, and that Turkey positioned itself as the largest individual investor with 127,1 million, or about 15 percent of the total inflow.