Montenegro has taken an important step to stimulate the economy by establishing a new Credit Guarantee Fund (CGF). This innovation will accelerate business development and open doors for those who have so far faced limited or difficult access to capital.
Economic analyst Mirza Mulešković emphasizes that the fund is especially aimed at supporting women entrepreneurs, startup founders, and companies in key sectors — tourism, agriculture, and the processing industry.
What is the Credit Guarantee Fund (CGF) and why is it important?
The Credit Guarantee Fund (CGF) is a mechanism that helps businesses obtain loans by providing banks with a guarantee for repayment of part of the amount. This reduces the risk for financial institutions and makes it easier for entrepreneurs to access financing.
In Montenegro, the fund’s initial capital amounts to 10 million euros. The fund is managed by executive directors and a board of directors that includes representatives of state authorities and independent experts.
Who will the CGF fund help?
The main beneficiaries are small and medium-sized enterprises, entrepreneurs, as well as agricultural producers who previously faced problems obtaining loans. Special attention will be given to the following groups:
- Women entrepreneurs
- Young businesspeople and startups
- Sectors of tourism, agricultural production, and the processing industry
According to Mulešković, this is an excellent opportunity to diversify Montenegro’s economy and increase its resilience.
Why is this important for Montenegro’s economy?
Small and medium-sized businesses in Montenegro account for approximately 99% of all enterprises and provide about 70% of jobs in the country. However, many entrepreneurs face difficulties accessing financing, especially in rural areas and in sectors where the country’s economy has significant potential.